As the autumn harvest season progresses, farmers face the dual challenge of bringing in crops like corn and soybeans while contending with a steep increase in diesel prices. This surge in fuel costs has arrived at a crucial time, adding strain to an already challenging agricultural landscape.
Host Michel Martin from NPR highlights the impact of these near-record-high diesel prices, which are driving up costs in shipping, construction, and particularly farming. Frank Morris from KCUR reports that diesel costs have risen nearly 60% compared to the previous year, significantly affecting farmers during harvest time.
Jed Bower, President of the National Corn Growers Association, is one such farmer feeling the pinch. Facing the task of harvesting 1,100 acres, Bower notes, “Probably going to cost me an extra 20,000 or 25,000 this year, which is tuition for one of my kids in college, basically.” He is also grappling with rising costs of fertilizers, equipment, and pesticides.
Despite having a promising crop in southern Ohio, Bower admits that profitability is elusive, marking this the fourth consecutive year of financial struggle. He mentions growing concerns about farm foreclosures and farmer suicides, attributing the difficulties to legislative inaction.
The spike traces back to a supply squeeze overseas rather than anything happening on American farms. Tensions tied to the war in Iran, particularly the choked-off Strait of Hormuz, have helped drive diesel prices higher, but Ukraine’s escalating strikes on Russian oil refineries have had an even bigger effect on the market, since Russia is one of the world’s largest diesel producers and has responded by banning exports. At the same time, U.S. distillate stockpiles — the category that includes diesel — have fallen to their lowest level since 1982, leaving little cushion just as harvest demand ramps up. The national average has already touched $5.85 a gallon, edging past the previous record set in 2022, and industry trackers have warned $6 diesel is now close to unavoidable.
The damage isn’t limited to what a farmer pumps into their own combine. Diesel is woven into nearly every stage of agricultural logistics — fertilizer delivery, grain hauling, livestock transport, and custom harvesting services — so rising prices can hit an operation twice: once through their own fuel bill, and again through higher charges from suppliers and truckers. Farmers also have little ability to offset the hit by charging more for their crops. As John Newton, VP of public policy at the American Farm Bureau Federation, put it, farmers “buy retail and sell wholesale,” meaning input costs go up while crop prices are set by markets they don’t control.
Jennifer Ifft, an agricultural economist at Kansas State University, provides insight into the varying impacts of these price increases. “If you’re a farm who’s showing a profit, it’s like a paper cut. But if you’re somebody who’s on the edge, it’s like getting kicked when you’re down,” she explains.
Even with bank loans and government assistance, the burden of increased diesel prices remains a significant hurdle for many farmers.
