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[Record-High US Diesel Prices Pressure Farmers, Potentially Leading to Rising Food Prices] ⑴ US farmers are facing record diesel prices during the harvest season, further squeezing profit margins. Rising grocery prices ahead of the November midterm elections seem inevitable. ⑵ Global fuel supplies have tightened due to the US-Israel war against Iran and Ukraine's attack on Russian refineries. The average US diesel price hit a new high this week at approximately $6.29 per gallon, up about 68% from a year ago. ⑶ Economists at Michigan State University stated that rising diesel prices are pushing up costs across the food supply chain, as most food is transported by truck, which uses diesel. ⑷ The latest Consumer Price Index shows that consumer food prices rose about 2.7% year-over-year in August. ⑸ Farmers can use tax-free off-road diesel, but even with discounts, many farmers are still paying significantly higher fuel costs than last year. ⑹ A vegetable grower in California stated that fuel costs have risen by about 40%, from about $5 to about $7 per gallon. To save money, he has restarted a 1950s gasoline tractor and retired a diesel pickup truck. (7) Data from Purdue University economists shows that fuel costs for corn planting have increased by about $11 per acre compared to last year, and for soybeans by about $7 per acre. (8) Corn, soybean, and wheat futures have risen sharply since mid-August, reaching multi-year highs in early September, but farmer profit margins remain below historical averages. Some economists warn that high oil prices could push up seed and fertilizer costs next year. (9) A hay farmer in Washington state said that farmers have tightened their belts and have little room to absorb rising fuel prices; any increase at present means new debt for farms. (10) A Republican senator from Kansas wrote to the Secretary of Agriculture requesting temporary relief for farmers. The Department of Agriculture stated that it is working tirelessly to address the issue and will release more information in the coming weeks. (11) Economists point out that although fuel accounts for only a small portion of food costs, consumers may still see price increases as the supply chain absorbs higher fuel costs. The most vulnerable are agricultural products requiring refrigerated transport, dairy products, and meat. 12. Data shows that refrigerated trailer rates for apples and pears in Yakima Valley, Washington, have hit a four-year high. Agricultural transportation costs in California have increased by about 40% to 120% compared to last year, and diesel prices in some cities have exceeded $8 per gallon. Industry insiders expect that diesel-driven trucking companies will go bankrupt.