The Tank is Full. The Wallet is Not

Diesel costs remain a concern for farmers heading through harvest as tight global crude oil and refined-product supplies keep fuel prices elevated. In the U.S.Department of Agriculture's expense report for agriculture, fuel costs moved up28.8%, or around $4.8 billion. It is likely that if current conditions do not change, these numbers will only be increased further in the November cost of production forecast. With already tight margins and negative returns projected this year, high fuel costs are likely to hit producers much harder.

The current climate has tightened oil stocks globally. Besides conflict in the Middle East, droughts in Europe have shrunk available transportations measures as well. International markets are adding to that pressure. The U.S. Energy Information Administration (EIA) estimates global oil inventories had fallen by400 million barrels during 2026 through the beginning of September. Th International Energy Agency reported that global refinery throughput in August was 4.2 million barrels per day below last year.

For Nebraska agriculture, diesel supplies may be an even more immediate concern. The timing is particularly important for agriculture. These market conditions make fuel an important cost to watch through harvest. Combines, tractors, and grain transportation all depend heavily on diesel, meaning sustained fuel-price pressure can add to the cost of getting a crop out of the field and to market. Harvest-season creates peak demand for diesel fuel. This higher demand puts pressure on low oil inventories, potentially driving the prices up further. According to the EIA as of Sept. 21 on-highway diesel fuel prices in the Midwest were at $6.68. This is almost a $3 increase from last September's prices around this time.

On Sept.24, Governor Jim Pillen announced a round of Executive Orders to help ease these rising costs. The first executive order will give a 90-day suspension to the tax on diesel fuel for agricultural producers. The second order will increase the weight limits for grain and livestock hauling for 90 days so fewer trips will need to be made when hauling commodities. Additionally, Governor Pillen sent a call-to-action letter to President Trump to suspend diesel exports overseas so domestic reserves can refill.