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Diesel prices to stay high in 2023

Diesel prices are expected to remain elevated throughout 2023. 

Dan Kowalski with CoBank Knowledge Exchange says diesel supplies are tight and will probably remain that way.

“In a sense that I don’t see what’s going to fix the problem.”

He points to the War in Ukraine and a lack of domestic oil production as primary contributors.

“We’re looking at diesel prices nationally over $5.00, and we’ll probably have (prices) somewhere close to that, north of $4.50, in 2023.”

At the farm level, Kowalski says diesel costs will drag down margins next year.

Kowalski presented during the Minnesota AgriGrowth Ag And Food Summit Thursday in Minneapolis.