Posted on

“We budgeted for an increase ….

“We budgeted for an increase over last year’s fuel costs, but these are unforeseen fuel price increases,” Toavs said.

The county road department and sheriff’s office depend heavily on fuel. A difficult winter with heavy snowfall could put additional pressure on the road department’s fuel budget.

“We hope we don’t have a bad snow year, which will drastically challenge the county road department’s fuel budget,” Toavs said.

At the same time, the sheriff’s office cannot simply reduce its fuel consumption when prices rise.

“The sheriff’s office’s budget is also heavily affected by fuel prices,” Toavs said. “But both entities have to keep running, and fuel prices can’t dictate day-to-day operations.”

Toavs said the county may need to amend its budget later in the fiscal year to account for higher fuel costs.

“We may have to amend budgets in the spring once we get closer to our fiscal year end,” he said.

Because the county’s fiscal year runs from July 1 through June 30, the full effect of a winter fuel increase may not become apparent until the spring.

“Lower fuel prices in the spring will not correct the budget shortfall that may occur this winter if we have a bad snow season,” Toavs said. “We would still need to do a budget amendment to give us enough budget to continue business as usual through the end of the budget year.”

For farmers, ranchers, truckers and other rural businesses, the concern is not simply the price displayed on the pump. It is how that price moves through every part of an operation where equipment must run, products must be transported, and distances cannot easily be shortened.

Trower said producers are feeling that pressure throughout their operations.

“At normal diesel prices, fuel is one of the smaller inputs as a percentage of their overall farm or ranch expenses,” he said. “At today’s inflated prices, however, fuel represents a much more significant cost and is putting additional pressure on already tight margins.”

For northeast Montana producers accustomed to long distances and limited alternatives, the record price of diesel is another cost they must absorb somewhere in the operation.

As Berwick put it, “If you just double the price of anything you’re doing, it’s tough regardless of your business.”

Leave a Reply

Your email address will not be published. Required fields are marked *

LATEST NEWS