Lower fuel costs a silver lining to energy collapse
March 27, 2020 By Mark Dorenkamp Filed Under: Crops, Minnesota, News
A silver lining to the precipitous drop in energy markets is
reduced fuel prices as farmers go into spring planting.
Southwest Minnesota corn and soybean grower Bryan Biegler tells Brownfield diesel in the area is down more than 20 cents just in the last week.
“So that is one little bonus that we can probably get that locked in at a little bit better price now.”
On the flipside, the Murray County farmer is seeing the destruction of a key end-user of corn.
“One good thing when fuel prices are up, it usually means ethanol is (doing) better and having better returns, which leads to better corn prices. So you gain on one end, lose on the other. So it kind of evens out a little bit. I guess with low corn prices, we’re a little further behind even.”
He says less than a month ago local cash basis for corn was near
zero, but is now back to 40 under.
Biegler currently serves as treasurer for the Minnesota Corn Growers Association.
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