Rising Diesel Costs Threaten Farms
North American Farmers Face Severe Financial Pressure From Rising Diesel Costs and Drought
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Key Points
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Northern Colorado farmer Nate Bowers said some irrigated and fertilized fields produced “like no hay to show for them,” illustrating the extent of the drought’s impact beyond higher operating costs.
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Hay farmer Kellen Riedlinger estimated that his diesel costs were “easily double, if not two and a half times” past levels and said he had already lost customers because higher hay prices were difficult to pass along.
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Ontario farmer Jesse Kenwell said diesel costs had become “pretty devastating” and forced him to sharply reduce work for Mennonite communities because he could no longer afford to cover the travel costs of moving machinery between farms.
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Natural Resources Canada data cited by CBC showed average Canadian diesel prices reached $2.75 per litre in mid-September, well above the previous record of $2.25 in 2022 after Russia’s invasion of Ukraine disrupted global supply.
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Ontario farmer Kyle Schuknecht said farmers felt forgotten by both levels of government, describing the situation as “rough for the last few years” and saying it did not appear to be improving.
Farmers across North America are facing a financial crisis as diesel costs spike while drought, low crop prices, and supply disruptions squeeze their already-thin margins. From Colorado hay fields to Ontario grain operations, producers report fuel expenses have doubled or tripled, forcing many to cut back work, lose customers, and seek government aid. CBC data shows Canadian diesel hit a record $2.75 per litre in mid-September — far above the previous 2022 peak of $2.25.
Colorado Hay Producers Face Drought and Fuel Squeeze
Northern Colorado farmers are caught between two crises: severe drought has slashed hay production, while expensive diesel makes it harder to buy and haul hay from out of state. Farmer Nate Bowers said some irrigated, fertilized fields produced "like no hay to show for them." Fellow hay farmer Kellen Riedlinger estimated his diesel costs were "easily double, if not two and a half times" past levels.
Riedlinger said higher hay prices are difficult to pass on to buyers. He has already lost customers because the total bill — hay plus delivery — became too expensive. Rising fuel costs compound the drought's damage, turning an already-difficult year into a financial disaster for producers with little room to absorb additional expenses.
Alabama Harvest Arrives With Elevated Fuel and Fertilizer Bills
Alabama farmers are entering fall harvest facing a harsh reality: fuel costs are still elevated from spring fertilizer and planting expenses, yet crop prices remain near historic lows. With little profit margin to work with, higher diesel costs for equipment operation and grain transport threaten to push operations into losses.
Farmers in the state say they have almost no financial cushion left. Rising fuel expenses arrive at the worst possible time — during harvest, when tractors and trucks run constantly. Even small increases in per-gallon costs add up to thousands of dollars across a season.
Ontario Farmers Cut Operations as Diesel Hits Record Highs
CBC reported that Ontario diesel prices reached record highs due to global crude oil disruptions linked to the Iran conflict. Farmer Jesse Kenwell called the situation "pretty devastating" and said he sharply reduced custom work — moving machinery between Mennonite community farms — because he could no longer cover travel costs in expensive diesel.
Ontario farmer Kyle Schuknecht said farmers felt abandoned by government. "It's been rough for the last few years and it does not appear to be improving," he said. Agricultural groups are urging both provincial and federal officials to provide fuel cost relief, pointing to global oil supply disruptions and added pressure from U.S. tariffs on Canadian goods.
Farmers Push for Government Support as Crisis Deepens
Unlike some U.S. states—The Advocate reported that Louisiana farmers won an $8 million diesel tax break through an executive order—Canadian farmers say they remain without meaningful relief. Ontario producer groups are pressing officials at both levels of government to act.
The crisis reflects a broader squeeze: farmers operate on razor-thin margins, with little ability to raise prices when input costs explode. Without government intervention or a sharp drop in global oil prices, many small and mid-sized operations risk going underwater before next season begins.
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