WASHINGTON, DC – Farm fuel costs jumped sharply in September, adding another layer of pressure to producer budgets already strained by elevated feed, fertilizer and machinery expenses.
USDA says its fuels price index rose 14% from August and 54% from September 2025. Higher diesel, LP gas and gasoline prices drove the increase, making fuel one of the fastest-rising major farm input categories.
Feed costs were also 11% above a year earlier, while fertilizer remained 10% higher despite slipping slightly from August. Machinery costs increased 2.6% from last year, while service expenses also remained elevated.
Higher fuel expenses affect more than field operations. Diesel costs flow through harvest, livestock feeding, grain movement, custom work and freight, increasing the cost of moving agricultural products through the supply chain.
The September increase comes as federal officials move forward with an $8 billion Harvest Fuel Relief effort, although payment formulas and eligibility details remain pending.
Farm-Level Takeaway: Rapidly rising fuel costs are increasing operating pressure across crop, livestock and transportation budgets.