Record Diesel Prices Compound Farmers' Woes

As American farmers prepare to harvest two of the nation's largest commodities—soybeans and corn—they are confronting a new obstacle: record-high diesel prices. The national average price of diesel reached $5.85 per gallon on September 4, a record at the time, and has since climbed further to $6.05 per gallon, according to AAA data cited in multiple reports.

This surge marks a 60% increase from the pre-war national average of about $3.76 per gallon recorded in late February, before the United States and Israel launched their war against Iran. The conflict has disrupted global fuel flows, particularly through the Strait of Hormuz, where tanker traffic has been affected, driving up crude oil prices—the main ingredient in diesel and gasoline.

For farmers, the timing could not be worse. "Those prices hurt," said Paul Mitchell, a professor of agricultural and applied economics at the University of Wisconsin-Madison. "And it's not just the harvesting. It's the hauling of everything, moving the grain or the silage from the field to the farm and then from the farm to wherever they're selling it."

A Farmer's Bottom Line

Jason Kurtz, a corn and soybean farmer near Forest City, Missouri, said he is paying twice as much for diesel this year. His combine consumes about 200 gallons of fuel per day, and he expects to run it for 30 days during the harvest. He also needs diesel for a tractor and trucks.

"We have to harvest," Kurtz told reporters at his farm, about 90 miles outside Kansas City. "We have to run the machines. We have to use the diesel, so it cuts into our bottom line."

Kurtz, 49, noted that his finances were "already tight" this year after also paying more for fertilizer and chemicals. The higher fuel costs add to a difficult season that has already seen increased expenses for seeds, equipment, and other inputs.

Broader Economic Impact

The price spike has implications beyond individual farms. Mitchell highlighted that the cost of moving crops—from fields to farms and eventually to buyers—has risen, affecting the entire agricultural supply chain. Farmers who are cash-strapped may struggle to absorb these additional costs, potentially impacting their ability to operate.

While diesel prices have historically been volatile, the current levels are unprecedented in the United States. The war with Iran, now in its sixth month, has created sustained disruptions in global oil markets, and analysts suggest that prices may remain elevated as long as the conflict continues.

For now, Kurtz said he plans to hold off on some farm work until later, hoping that diesel prices will eventually fall. Whether that hope materializes remains uncertain, but for many farmers, the pressure of record fuel costs is already a harsh reality.