By Julie Tomascik
Editor

Rising diesel prices are adding another expense to already tight farm budgets.

The national average on-highway diesel price reached $6.285 per gallon Sept. 14, up nearly 70% from the same week last year, according to a recent American Farm Bureau Federation (AFBF) report.

Farm diesel prices are also climbing. The average reached $5.45 per gallon Sept. 4, up from $3.02 a year earlier, an increase of about 80%.

Those increases add to financial pressure farmers are feeling from fertilizer and other production expenses.

“We’re already operating on very thin margins,” James Foster, Collin County farmer and rancher, said. “With fertilizer prices, what they are at this time, we’re already pretty much operating at a loss. So, these higher fuel prices just exacerbate the problem.”

Fuel use can add up quickly on Foster’s farm. One tractor can burn more than 200 gallons of diesel during a full day of fieldwork, and several tractors may be running at the same time.

Farmers have limited options to reduce those costs. Foster said he can sometimes save money by buying diesel in bulk when prices dip. He’s also considering farming practices that require fewer trips across the field to reduce the amount of fuel needed.

But many jobs can’t wait for fuel prices to drop.

“A lot of this stuff is time sensitive. It has to be done. So, you just have to continue,” said Foster, who also serves as a Texas Farm Bureau state director.

The same applies to his cattle operation. Feed trucks still make daily rounds to check cattle and make sure they have water and mineral, regardless of diesel prices.

Tight global supplies continue to keep diesel prices elevated even as crude oil prices fluctuate. Limited refining capacity and disruptions to major shipping routes have contributed to higher prices, according to AFBF Economist Faith Parum. U.S. distillate inventories, which include diesel and heating oil, also remain tight.

The U.S. Department of Agriculture forecasts U.S. farm fuel and oil expenses at about $22 billion in 2026, an increase of nearly 29%, or almost $5 billion, from last year.

Those expenses come as farmers are already dealing with elevated fertilizer prices and other production costs.

Despite those challenges, Foster remains optimistic.

“As agricultural producers, we’re eternal optimists,” he said. “You’ve got to be an optimist to continue.”