Farmers aren't going to get a break on fuel prices any time soon according to Dr. Howard Gruenspecht from the Energy Information Administration. He told the House Agriculture Committee last week that tight global oil market conditions will likely continue through 2008.
"Retail diesel prices in 2008 are projected to average nearly $3 per gallon, up about 20 cents from their 2007 level," Gruenspecht says. "This winter heating oil is expected to be about 40 cents a gallon higher than last winter."
So farmers and for that matter everyone else needs to factor those increases into financial planning for next year. Gruenspecht was basing his figures on oil prices being above $70 a barrel, but oil was nearly $20 dollars above that last week, so those figures may increase substantially.