- Diesel prices have soared globally after disruptions in the Strait of Hormuz and Ukrainian attacks on Russian refineries, tightening fuel supply into the current agricultural production season.
- Farmers in some regions face fuel costs more than 50% higher than last year, with diesel a major expense when planters and harvesters head into the fields.
- The fuel supply squeeze is threatening to stoke a new wave of food inflation, with pressure concentrated in agricultural regions spanning Victoria, Australia, to Alberta, Canada.
- Uncertainty about how tight energy supplies get during this production season and the next is rising, keeping cost risk open for growers.
Quotes
“Diesel prices have soared globally amid disruptions in the Strait of Hormuz and Ukrainian attacks on Russian refineries, hitting the agriculture industry especially hard from Victoria, Australia, to Alberta, Canada.”
“Farmers in some regions face fuel costs that are more than 50% higher than last year.”
“There’s growing uncertainty about how tight energy supplies might get during this production season and next.”