Farmers Face Thousands in Diesel Costs as Prices Surge

The diesel price surge has farmers facing thousands of dollars in additional fuel costs. According to an analysis by the American Farm Bureau Federation, the U.S. farm diesel price rose from $3.01 per gallon in September 2025 to $5.61 in September 2026, an increase of $2.60 per gallon.

The national average price for on-highway diesel has reached $6.38 per gallon, while farm diesel in the heart of the Corn Belt has climbed to nearly $6 per gallon. The federal government imposes 24.4 cents per gallon in taxes and fees on highway diesel, with states adding an average of 35.5 cents per gallon.

Several states have already taken emergency steps to ease fuel costs or provide farmers more flexibility in using dyed diesel. Alabama has halted state enforcement of dyed-diesel restrictions for agricultural and timber operations, while Arkansas temporarily suspended certain state taxes and penalties for qualifying agricultural and forestry operators using dyed diesel.