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Record Diesel Prices Squeeze U.S. Farmers and Threaten Food Costs
By Drooid · · How we work
Record Diesel Prices Pressure Harvest Season
Across the United States, diesel prices have surged to a new record of $6.29 per gallon, a 68 % increase from $3.74 a year earlier, according to Energy Information Administration data. The spike coincides with the peak of the harvest period, forcing farmers such as Addie Yoder in northeast Missouri and Drew Peterson in southeast South Dakota to confront daily fuel bills that can reach $1,500 for a single combine—double the cost of the previous year.
Economic Impact on Farm Operations
Higher fuel costs are inflating the expense of every production stage. Purdue University economist Michael Langemeier reports that farm fuel costs have risen $11 per acre for corn and $7 per acre for soybeans. Off-road diesel discounts have softened the blow, yet many growers still face steep increases; Wayne Gularte, a California vegetable farmer, notes a rise from roughly $5 to $7 per gallon. University of Illinois agricultural economist Nick Paulson warns that diesel above $6 per gallon could generate broader inflationary pressure on seed, fertilizer, and other inputs.
Official Responses and Policy Requests
On September 11, Senator Roger Marshall (R-Kansas) wrote to Agriculture Secretary Brooke Rollins requesting temporary relief for farmers absorbing “substantial unplanned fuel costs” during this diesel-intensive period. A USDA spokesperson later said the agency is “not leaving any stone unturned” and referenced a September 15 interview in which Rollins indicated further announcements were forthcoming.
Data Highlights
- Consumer food prices rose 2.7 % year-on-year in August (Consumer Price Index).
- Transport costs for California produce are up 40 % to 120 % from a year ago; some cities see diesel exceeding $8 per gallon.
- Freight analyst Dean Croke notes refrigerated-trailer rates for apples and pears from Washington’s Yakima Valley have reached a four-year high.