Nebraska Ag Producers Take Hit from Rising Diesel Prices

Nebraska's agricultural producers have been hit hard by rising diesel prices this planting season. According to research from AAA, the U.S. Department of Agriculture, and Iowa State Extension, Nebraska soybean and corn growers spent an additional $110 million on diesel fuel compared to last year.

This places Nebraska fourth in the country for increased spending, behind only Illinois, Iowa, and Minnesota. Ann Johanns with Iowa State University Extension attributes the higher prices to uncertainty over the Iran war's impact on oil supplies, leading to a nearly 50% increase in diesel costs since last fall.

Johanns notes that while recent crop market reports suggest a more positive outlook for 2027, high production costs are likely to persist. Diesel accounts for approximately 25% of Nebraska ag producers' machinery costs, making it a significant factor in tight margins.