Montana Farmers Feel Pinch as Diesel Prices Soar to Record Highs
High diesel prices are squeezing Montana farmers who have no choice but to keep buying fuel for their equipment, potentially passing on costs further down the supply chain.
The state's average diesel price has risen to $6.23 a gallon, up $2.58 from last year and just below the record high of $6.31 set in September 2023.
Eric Belasco, an agricultural economics professor at Montana State University, said that farmers can't simply stop running their equipment when prices rise due to competitive commodity markets. This means they have limited ability to raise prices to compensate for higher input costs, resulting in a tighter profit margin.
Nationally, the U.S. Department of Agriculture forecasts American farmers will spend an additional $4.8 billion on fuel and oil in 2026 compared to the prior year, a 29% increase.