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Rising Diesel Fuel Costs Pressure Minnesota Farmers and National Home Builders

Minnesota crop farmers face potential costs exceeding $100 million for diesel fuel this year, a figure that ranks among the highest in the nation. The administration announced that high fuel prices are likely to lead to higher prices for consumers as farmers absorb costs that drivers and retailers can often pass along. In the construction industry, Jim Tobin, president and CEO of the National Association of Home Builders, stated that diesel is critical to construction. He noted that the spike in fuel prices has put pressure on home building in the short term because diesel powers the trucks hauling materials and the heavy equipment used to prepare lots and build homes. The national average price of on-highway diesel climbed to $5.65 a gallon this week, up nearly $2.00 from a year ago. These rising costs are occurring as the administration targets regulatory costs to make housing more affordable. While the administration has sought to show it is addressing energy price spikes, the surge in diesel prices remains a significant economic factor for rural areas and blue-collar businesses like farming and trucking.

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