The high cost of diesel fuel is hitting both Canadian and US farmers hard as they grind through the fall harvest.
According to the American Farm Bureau, US diesel prices are averaging US$5.32/gallon, more than $1.50 above the same time last year. On this side of the border, Natural Resources Canada is reporting the average national retail price of diesel for the week of Nov. 8 at just over $2.23/litre, up 52% from the same time last year and more than double the level of two years ago.
Canadian prices vary by province, with retail prices in New Brunswick pushing over the $3 mark on the weekend. For some farmers on this side of the border, that is adding an extra $1,000 per day to the cost of their harvest.
A ban on imports of petroleum from Russia, lower US production capacity, and seasonal demand are all contributing to the higher cost of diesel, with US Energy Information Administration (EIA) late last month reporting inventories of distillate fuels such as diesel and heating oil at their lowest levels since 2008.
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