Record Diesel Prices Squeeze Farmers During Harvest Season

Diesel prices have surged to unprecedented levels just as harvest season kicks off across the Midwest, adding to the financial strain on farmers already grappling with tight margins. Aaron Bowne, a crop and livestock producer from White, South Dakota, noted that input costs, particularly diesel, are the biggest challenge this year. The national average diesel price hit a record high of $6.52 per gallon on Sept. 22, 2026, surpassing the previous peak of $5.82 per gallon in June 2022. As of Sept. 30, the average stood at $6.41 per gallon.

Farmers rely heavily on diesel for transportation and machinery operations, with some using up to 100 gallons per day. Sarah Sellars, an assistant professor at South Dakota State University, explained that farm diesel prices, though slightly lower due to tax exemptions, have still risen significantly. On Sept. 4, the Farm Bureau reported national farm diesel prices at $5.45 per gallon, up from $3.02 the previous year. The impact varies by farm size and storage capacity, with diesel costs adding approximately $12.55 per acre compared to last year.

Government actions have been introduced to mitigate the impact of high diesel prices. The Federal Motor Carriers Safety Administration waived hours-of-service limitations for diesel transport through Dec. 16. Several state governors, including Larry Rhoden of South Dakota and Kelly Armstrong of North Dakota, have issued executive orders to ease restrictions on fuel use and weight limits for agricultural vehicles. These measures aim to provide some relief to farmers during the critical harvest period.

Despite these efforts, farmers face limited options to reduce diesel consumption. Sellars suggested that skipping fall fieldwork or adopting no-till practices could help, but acknowledged that diesel remains an essential and non-negotiable input for agricultural operations. The rising fuel costs are expected to significantly impact crop budgets, with fuel and oil expenses projected to rise from 3% to 5% of gross crop revenue for corn in 2026.