SPY +2.55%
BND +0.41%
QQQ +5.18%
DIA +0.83%
VNQ +0.35%
GLD +1.74%
BTC +14.01%
AAPL +1.90%
GOOGL +3.72%
NVDA +6.04%
MSFT +2.28%
META +10.03%
AMZN +5.10%
TSLA +4.73%
UBER -0.04%
GS +2.30%
BAC +0.22%
JPM +0.83%
BRK.A -3.36%
COST +0.53%
XOM -2.89%
BABA +8.05%
WMT -0.11%
SPCX +1.05%
DIS -2.58%
F -1.12%
  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Economy
Gas prices at Shell gas station Robert V Schwemmer / Shutterstock.com

‘Toughest it's ever been': Indiana farmer faces $7 diesel at harvest, warns it hits ‘every person in the United States' — it was $3.78 last fall

Indiana farmer Donnie Lawson is heading into one of the busiest times of the year — but this harvest season, getting his corn and soybeans out of the ground is coming with a much higher price tag.

Lawson, co-owner of Lawson Land and Cattle Company in Thorntown, Indiana, relies heavily on diesel during harvest to power the machinery that keeps his operation moving. With prices topping $7 a gallon at some stations across central Indiana, fuel is suddenly swallowing up a much larger share of his operating costs.

Advertisement

“To me, it doesn’t make sense to go buy a whole bunch of fuel at $7 a gallon,” Lawson, told FOX59/CBS4. “But maybe that’s the best thing to do because it may be at $8 a gallon here in a week or two.”

The money news that actually matters.

By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.

While Lawson may be feeling the sticker shock first, he says it won’t necessarily stay on the farm.

“It’s not just us on the farm,” Lawson explained. “It affects every person in the United States because we supply the food.”

A costly harvest for farmers

As of Sept. 21, the average gallon of diesel in Indiana costs about $6.82, according to AAA, roughly 80% more than the $3.78 drivers were paying a year ago. Nationally, diesel has also reached a record $6.51 per gallon.

For farmers, the timing is particularly painful. Harvest season means long days running fuel-hungry equipment, so a rise in diesel prices can quickly add thousands of dollars to operating costs.

“This is the toughest it’s ever been in agriculture,” Lawson told the news outlet. “And that’s from top to bottom.”

The USDA expects U.S. farmers’ fuel and oil expenses to climb by $4.8 billion, or 28.8%, in 2026 compared with last year. Fertilizer, lime and soil conditioner expenses are also projected to rise 15.3%.

And Lawson isn’t the only Indiana farmer watching fuel costs eat into his harvest. In Posey County, farmer Randy Kron told 14 News that his combine burns about 25 gallons of diesel an hour, pushing his fuel bill above $1,500 on some harvest days, before accounting for the trucks needed to haul grain.

After more than 40 years in farming, Kron said he can’t remember diesel prices putting this much pressure on his operation.

Advertisement

“It’s going to make it a challenge to have a profit this year in the farm,” Kron said. “And I told our son that helps on the farm, our goal is just to break even this year let’s try not to lose any money.”

Must Read

From farm to table

The pressure doesn’t stop once crops leave the farm. Diesel also keeps much of the country’s freight system moving, meaning higher fuel prices can follow food all the way to the grocery store.

Mike Bender, a CDL-A driver, told FOX59/CBS4 that those costs eventually have a way of reaching consumers. And given how much of the country’s freight moves by truck, even a sustained jump in diesel prices can have a wider impact. Trucks carried roughly 72% of all U.S. domestic freight by weight in 2024, according to the American Trucking Associations.

Higher diesel prices can show up more than once in the cost of food, first when farmers run their equipment, and again when those products are shipped to processors, warehouses and stores.

For shoppers, that doesn’t mean every grocery item is suddenly about to jump in price. But with Americans already paying more at the supermarket, another increase in the cost of getting food from the farm to the shelf certainly doesn’t help. Keeping an eye on unit prices, shopping around weekly sales and stocking up on pantry or freezer staples when they’re discounted can give your grocery budget a little more breathing room if those higher costs eventually make their way to the checkout.

You May Also Like

Share this:
Victoria Vesovski Senior Reporter

Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.

more from Victoria Vesovski

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.