US diesel prices hit record high; farmers face rising costs and food supply chain pressure

Pars Today – Record-high diesel prices in the United States, coinciding with the harvest season, have subjected farmers to a sharp increase in fuel costs for their machinery. Experts say the surge is also putting severe pressure on the food supply chain.

According to Pars Today, citing IRIB News, unprecedented diesel prices in the United States have put pressure on farmers and driven up food prices. A farmer in northeastern Missouri explained that from mid-September to late October, he uses two combine harvesters, three medium-duty trucks and several tractors to harvest and transport crops.

He said that with diesel prices reaching unprecedented levels, and with a single combine harvester requiring 300 gallons of fuel, the best option is to cut other expenses.

Another farmer in southeastern South Dakota also told Reuters that this season he spent $1,500 a day on fuel for just one of his combine harvesters, twice as much as he spent last year. He added that harvesting crops requires a large amount of machinery.

Reuters adds: Farmers across the United States are facing unprecedented diesel price increases at the height of the harvest season, which have significantly eroded the already slim profits they were making. The situation has also driven up food prices in stores and increased the cost of living.

According to data released by the US Energy Information Administration, the average price of diesel in the United States reached a new record of $6.29 per gallon this week, up 68% from $3.74 during the same period last year.

David Ortega, an economist at Michigan State University, believes that rising diesel prices increase costs at every stage of the food supply chain, from harvesting to delivery to grocery stores.

According to the latest Consumer Price Index, food prices rose 2.7% in August compared with the same month last year.

Dean Crouk, a senior analyst at transportation company DAT Freight & Analytics, also emphasized the rise in diesel prices and its impact on the US transportation industry, saying that independent truck drivers, who typically pay fuel costs upfront, may be unable to absorb further price increases.