Diesel Prices Skyrocket, Slamming Minnesota and Iowa Farmers with Record-High Costs

Minnesota and Iowa farmers are facing record-high diesel prices as they begin their fall harvest season. The national average for diesel is $5.90 a gallon, up 30 cents from last week and $2.20 from the same time last year, according to AAA.

A congressional report found that higher diesel prices increased the cost of planting major crops by more than $1.4 billion in 2026 compared to the previous year, a 63% increase. This includes corn, soybeans, wheat, cotton, and rice as major crops affected by the price hike.

The analysis also revealed that Iowa ranked second among states affected by diesel costs, with a more than $151 million year-over-year increase in diesel costs, while Minnesota came in third, with over $100 million in additional diesel costs in 2026 compared to 2025. Illinois topped the list of states impacted.

The increased cost of diesel is primarily due to supply chain disruptions across the Middle East, particularly in the Strait of Hormuz, where tanker traffic has been bottlenecked since the US and Israel launched their war against Iran in late February.