By Valentina Nunez
Rising diesel prices are adding to the financial challenges of Rockbridge County farmers already facing high expenses due to months of drought.
The average price of farm diesel has increased from $3.02 a year ago to $5.45 per gallon on Sept. 4, an increase of about 80%, according to the American Farm Bureau Federation.
For Tim Goodbar, a longtime logger and local farmer, diesel is important to almost every part of his business.
“We do nothing, not the very first thing to earn our living, that does not involve diesel fuel,” Goodbar said.
Goodbar operates a small family logging business with his sons and one employee. He also produces about 40 acres of hay on his farm. He estimates his business now spends about $500 a day on diesel, compared to roughly $2,500 to $3,000 in daily revenue.
Goodbar said his fuel expenses have roughly doubled compared to previous years, with off-road diesel now costing him more than $6 per gallon. Unlike on-road diesel, which is used in vehicles traveling on public roads, off-road diesel is used to power non-highway machinery like tractors and other farm equipment; it is generally exempt from highway fuel taxes.
As a result, he said his business has had to pay closer attention to their spending, sometimes putting off equipment maintenance to cover higher fuel costs.
“We’re probably letting some of our maintenance on our machinery slide a little bit because we’re having to pay extra for fuel right now,” Goodbar said.
Diesel powers much of the equipment farmers rely on, including tractors, trucks and machinery used to harvest hay. But with the drought already reducing hay production, higher fuel costs are making some farmers reconsider whether harvesting fields is worth the cost.
Tom Stanley, Rockbridge County’s agriculture extension agent, said he has spoken with three farmers who decided not to harvest hay from certain fields because the cost of running their equipment outweighs the amount of hay they would produce.
“Given the price of diesel fuel, they just decided to leave it and not even bother to mow it and harvest it,” Stanley said.
The drought has also forced farmers to purchase hay from outside the state, adding to transportation expenses. In calculations he made earlier this summer, Stanley estimated that a bale of hay transported from Kentucky that would have cost around $80 to $85 several years ago could now cost approximately $100, largely because of higher diesel-related transportation expenses.
For Mack Smith, a local farmer and president of the Rockbridge County Farm Bureau, one of the biggest challenges has been finding transportation for cattle.
Smith said higher fuel costs have made it harder to find cattle haulers willing to transport cattle, with some drivers choosing not to make the trips because of the expense.
He said some cattle buyers are holding off on buying because they cannot find transportation, reducing competition at auctions and potentially lowering the prices local farmers receive for their cattle.
“There are just literally not any trucks there to put the cattle on to haul them west,” Smith said.
Fuel expenses are also affecting farmers who have been forced to haul water after creeks, springs and other water sources dried up.
Stanley estimated that a couple dozen farm operations in Rockbridge County are hauling water to their livestock, with some making multiple trips each day. Others are filling water tanks a few times a week, depending on the size of their operations and their livestock’s needs.
Goodbar, who also serves on the Rockbridge County Farm Bureau board, said farmers regularly discuss rising diesel costs and the additional expenses caused by the drought.
“A lot of people in the county is hauling water for livestock, and have been all summer, and that has really put a burden on them,” Goodbar said.
Stanley said some farmers have already reduced the size of their cattle herds rather than continue paying for additional hay, transportation and water.
“We’ve had a lot of both part-time and full-time farms that have reduced the number of cattle they’re carrying because of the drought and the associated higher costs,” Stanley said.
As winter approaches, farmers could face additional challenges if water shortages continue and cold temperatures make it harder to provide water for livestock.
The biggest concern for Goodbar heading into the colder months is the rising cost of keeping his operations running.
“Diesel prices, high prices, just an everyday cost of having to do business,” Goodbar said.
Smith said smaller farming operations are especially vulnerable to rising expenses because they may not have the same financial resources to absorb higher costs.
“I think the small operator, it’s really hurt,” Smith said.