Diesel Price Surge Hits US Farmers, Impacts Harvest Logistics
The diesel price surge is impacting US farmers, particularly in the Midwest where corn and soybean harvest demands intense use of combines, tractors, grain trucks, and commercial transportation. As of September 14, the Midwest diesel average was $6.250 per gallon, up from $5.946 just one week earlier. This marks a significant increase, with national diesel prices rising by 31.8 cents over the same period.
Compared to last year, US diesel is now $2.546 more expensive per gallon. The higher fuel costs affect not only farm equipment operation but also transportation of inputs such as fertilizer and seed, as well as harvested grain movement.
Rail freight shows the rapid escalation of energy costs through the agricultural supply chain. Union Pacific's standard mileage-based fuel surcharge increased from 28 cents per mile in July 2025 to 71 cents in July 2026, with a set rate of 68 cents per mile for October and $225-per-car increases for corn and milo beginning October 1.
The impact will vary across producing regions. Farms with access to multiple elevators or processors may see differences among local cash bids depending on each buyer's transportation exposure. Monitoring basis alongside futures prices is crucial during the 2026 harvest, as transportation costs can erode profitability without appearing as a traditional farm input.