Outside market forces can lead to large price swings for fuel, but one Saskatchewan company has a solution to lock in price and take away some of the risk for farmers.
Rack Petroleum Ltd.’s HedgeHog app has won the company the 2024 Ag in Motion Innovation Award for business solutions.
The digital platform allows users to confirm a guaranteed price for diesel for future delivery up to two years into the future.
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Also known as “The Rack,” the agricultural services company was already hedging fuel on a “pen and paper, phone call method for a few years” before launching HedgeHog, said chief operating officer Cassandra Morari at the Ag in Motion farm show site in Langham, Sask.
The company operates 11 self-serve fuel stations across Saskatchewan and offers direct farm fuel deliveries.
“Farmers are able to manage their risk by pricing diesel ahead of time, the same way they would price their canola,” said Morari.
“Fuel tends to be something that doesn’t get a lot of time and attention,” she added.
There are no added fees for using the hedgeyourfuel.com app, and discounts are available for bulk purchases.
