The surge of gasoline prices is beginning to put stress on Iowa farmers.
According to the United States Energy Information Administration the price of diesel nationwide is over $5 a gallon. Guthrie County Extension Field Agronomist Mike Witt says this will affect farmers margins and bottom lines along with other decisions with their farm land.
“It’s going to be harder on some of those other decisions later on. Do I do a rescue spray? Are there things that maybe I don’t add certain biologicals or other things to the mix this year because those prices are so high, I don’t have that extra disposable or more fluid fluidity of the cash flow in order to make that happen.”
Witt says that the high diesel prices could cause food prices to also rise.
“Anytime prices are higher. For one thing, one part of the system, unfortunately, usually falls back on the consumers to make that up on the back end.”
According to the U.S. Department of Agriculture, grocery prices are expected to rise between 3 and 4 percent in the coming months.