Fuel prices have fallen by 50 percent between January 2014 and January 2016. And the on-farm impact could add up, leading to a possible $16-per-acre savings in 2016.
“According to the Purdue Crop budgets, in 2014, farmers expected to spend $63 per acre on energy for continuous corn production on high-quality farmland,” agricultural economist Brent Gloy told AgWeb. “Today, the estimate is $16 per acre lower, coming in at $47 per acre.”
That’s brought some positive news to the farm income and budget situations.
“The extent to which these savings will add meaningful dollars to the bottom line depends on a variety of factors, including the amount of tillage operations, the amount of crop drying required and whether energy is required for things such as irrigation,” Gloy said.
As of March 14, gas prices were $1.961 per gallon, up from $1.783 per gallon two weeks prior, but down $0.492 from a year ago, according to AgWeb. Diesel prices averaged $2.099 per gallon on March 14, which is $0.818 lower compared to a year ago.