Record Diesel Prices Hitting Eastern Shore Farmers Hard
Somerset County, Md. — Increased diesel prices are having an impact on famers across the Eastern Shore, as operational costs unexpectedly jumped over the past several months with multiple international conflicts straining global supply.
Diesel prices reached a historical high in Salisbury on Sept. 21, a whopping $6.50 a gallon according to AAA. That’s up from $3.62 a gallon at this point last year.
Farmers like Michael Edwards, owner of Wood Duck Landing Farm in Princess Anne, are feeling the squeeze, with heightened transportation and production costs tightening margins.
“The price of diesel is basically double. Our input cost has doubled and that has had a fairly dramatic effect on everything,” Edwards said. “Imagine your paycheck taking a certain percentage out or just for example, take $300 a week out of your paycheck. That would directly impact you. You would see that and feel that.”
Edwards said Wood Duck Landing goes through about 1,000 gallons of diesel a month, leaving the increased prices costing Edwards around $3,000 a month. He added that a federal grant helping famers sell products was cut last year, shrinking the income farmers could receive.
“Our income has been reduced and now our input costs have gone up dramatically. That’s not sustainable in the long term,” Edwards said. “The other thing that hasn’t hit yet where it’s going to affect everyone eventually is because this isn’t sustainable, it’s going to have to be passed along to basically the consumer.”
Edwards said he hasn’t raised prices this year but added that he can’t sustain the old prices if everything stays the same.
Mike Knauer, president of the Dorchester County Farm Bureau, explained that farm equipment can use a red-dyed diesel which is over a dollar cheaper than road diesel and isn’t taxed, but costs are up still up.
“It’s a little bit cheaper. But I mean, it still hurts. The diesel right now is our lifeline to our fall harvest. Everything we have runs on diesel,” Knauer said.
Representative Andy Harris (R-1) introduced a bill in Congress in September to suspend the federal fuel tax through the end of year. The federal tax on diesel is currently 24 cents a gallon. The bill is currently going through committee.
Knauer explained that the diesel costs are changing the way some local farmers are buying fuel. He said some people are buying smaller loads hoping to get cheaper prices the next week or two.
Edwards said some farmers he’s talked to aren’t planting cover crop this year. On his farm, he’s cut back on how often he mows, and is sending one fewer produce truck to the food bank a week, among other adaptations.
Knauer said that eventually, costs are going to find their way on down to everyday consumers.
“Bottom line is the consumer’s going to take the brunt of it because you still got to get food to the grocery stores. And it all comes by diesel,” Knauer said.
Edwards said that while he’s frustrated with having to deal with high costs on top of the regular challenges of farming, he’s working to be innovative and efficient. He asked the public not to blame their local farmers and said he feels it’s his responsibility as an American to do the best with what he’s got.
“We’re at war. And as a patriotic American, I’ll take the hit. But knowing that I can’t do this forever, I can only support this this season,” Edwards said. “We’re absorbing it this year, but next season if this doesn’t change, we have to do something.”
