As tractors roar to life to tackle spring chores – farmers need to keep an eye on their fuel supply and how they’re going to get what they need.
Jason Schwantz, CHS senior vice president of refined fuels says that with the sudden drop in oil prices – there’s more cheap fuel available then we’ve seen in recent history. Problem is it may not be the type of fuel farmers use most – namely diesel.
Schwantz says with Russia and Saudia Arabia flooding the world market with crude – prices have dropped. Add to that mix covid-19 which has the world on reduced movement, and you create a glut of gasoline ready for the pumps. Schwantz says most of that fuel is unleaded, and taking up valuable space in pipelines across the United States. Space that ultimately will be needed to transport diesel fuel to the nation’s farm fields.