Operational Costs for Farmers Skyrocket Amid Record High Diesel Fuel Prices

Shay Myers, the CEO of Owyhee Produce, oversees his family’s farming operations located along the Idaho-Oregon border. Myers buys about 10,000 gallons of diesel at a time. He’s calculated the higher cost of fuel has added almost $40,000 to their weekly operating costs when compared to a year ago.

Along with increased fuel prices, Myers says his freight costs have doubled and he’s had to pass all those additional costs along to his customers.

Shay Myers, CEO, Owyhee Produce: “So often people look at price increases, they're like, ‘Well, hey, that's not fair. Why would you just raise your prices?’ Well, we don't have a choice. Like we can't go to zero margin or to negative, or at least we're fighting not to. Nobody wants to work for free.” 

Brett Wilder is an agricultural economist at the University of Idaho.  

Brett Wilder, Economist, University of Idaho: “Farmers across the country are struggling and in different ways depending on where you are. Some people have more distance to market so that diesel is hitting you harder on the truck that's on the highway. Some people have bigger equipment and bigger fields so that diesel hits you harder as you run that machinery to harvest to do the later work in the fall for next year's crop.” 

Looking ahead to 2027, producers might plant different crops or stop topping off on-farm storage tanks.

Brett Wilder, Economist, University of Idaho: “What they want is stability, to be able to know that what they currently do, the way that their operation currently functions, can be sustainable moving forward.”

Shay Myers, CEO, Owyhee Produce: “This is three generations of effort with the fourth generation kind of knocking on the door now. This isn’t something you want to give up.”

For Market to Market, I’m Tammy Scardino.