Risk of theft a key hold-back of expanding fuel storage, survey suggests

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Purchases of diesel fuel happens several times a year on nearly all Canadian farms, and yet, it’s a purchase that is rarely hedged. That’s according to the latest RealAgristudies survey on diesel fuel purchasing, which wrapped in late May.

Regardless of acreage or gross income level, most farms don’t have more than 25 per cent of diesel fuel needs on-farm at any given time, making diesel purchases and delivery quite frequent in comparison to other inputs.

According to the survey, farmers cite several reasons why they don’t plan to add diesel storage, including the risk of theft.

What’s not clear from the survey is whether or not increased storage might be a more attractive investment if fuel purchases could be more easily hedged.

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