U.S. Farmers Cite Record Diesel Prices as Harvest Costs Surge
Diesel prices topped $6 per gallon in early September, prompting farmers to warn of severe profit pressures during the peak harvest season.
Diesel fuel reached an all-time high of $6.31 per gallon nationwide in early September, according to AAA data, with some California stations approaching $10 per gallon. The surge, linked to supply constraints from the Iran conflict and broader global pressures, is straining farmers who need the fuel for combines and tractors during the critical harvest period.
John Boyd, founder and president of the National Black Farmers Association, told Newsweek that he is harvesting corn at $5 per bushel while paying $7 per gallon for diesel, a cost that amounts to nearly $1,000 for a full 140-gallon tank. Boyd said the price increase is forcing many growers into untenable financial positions.
Jason Kurtz, a farmer who supported President Trump in the 2024 election, said his operation is cutting expenses to stay afloat, noting that diesel costs have risen about 37 cents in the past week. He emphasized that the fuel is essential for running harvest equipment and directly impacts farm margins.
The administration has highlighted a recent agreement securing U.S. access to more than 65 billion barrels of Venezuelan oil and asserted control over the Strait of Hormuz, claiming these moves will lower fuel prices. Boyd questioned the effectiveness of those actions, pointing to the ongoing record diesel prices.
A July report by Democrats on the Joint Economic Committee indicated that farmers spent $1.4 billion more on diesel during the 2026 planting season than the previous year, a 63 percent increase in planting costs before the latest price spike. The American Farm Bureau Federation projected that U.S. crop producers could face $31 billion in losses this year, potentially rising to $32 billion in 2027.
"Trump says the United States is winning the war in Iran and we are in control of the Strait of Hormuz. Based on $10 diesel fuel we are losing the war," Boyd said.
"We have to harvest. We have to run the machines. We have to use the diesel, so it cuts into our bottom line," Kurtz added.
Economists such as JPMorgan investment strategist Kriti Gupta note that while fuel price hikes historically strained household budgets, the current impact on overall consumer spending appears muted. Nonetheless, the agricultural sector continues to confront elevated production costs, lower commodity prices and tight profit margins.