Rising farm costs could mean higher grocery prices
YUMA, Ariz. (KYMA) – Farmers are facing higher diesel and fertilizer costs heading into harvest season, and an economist says consumers could eventually feel the impact at the grocery store.
Diesel prices have climbed as global fuel supplies are disrupted by the war with Iran. Farmers are also dealing with higher fertilizer costs and uncertainty around tariffs.
Breyon Williams, chief economist with Groundwork Collaborative, says diesel is a major expense for farmers because it is used to power tractors, irrigation equipment and transportation.
Those higher costs can make it more expensive to grow and move crops, and Williams says some of that pressure is already showing up in food prices.
He says wholesale costs are still elevated, meaning businesses have yet to pass all of those higher expenses on to consumers.
Williams says shoppers could continue to feel the impact of higher food prices through next year, with elevated prices potentially lasting beyond 2027.
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