Rising Fuel and Fertilizer Costs are Hitting U.S. Producers Differently

An ag economist says the rise in input costs is impacting producers differently. Josh Maples with Mississippi State University Extension says larger producers likely purchased fuel and fertilizer at the end of 2025. “However, I would say a lot of smaller producers don’t do that,” he says. “And so, this is a spot here where we may see a bit of differences between size of operation and the relative impact it has on their operation.”

He shared with Brownfield Ag News for those producers who have yet to make the bulk of their input purchases for 2026, they will most likely be disappointed. “Unless we see some pretty sharp reductions, it’s going to be at a much higher cost than was probably expected a few months ago,” he says.

For the first time in four years, the national average price for fuel exceeds $4 per gallon. The national average for diesel is at $5.68 per gallon, up 18-cents from the previous week and more than $2 higher than year-ago levels.

EDITOR’S TAKE:

Mr. Maples’ argument does make some sense. Those unable to pre-purchase their inputs or lock in a favorable price are clearly facing a much more challenging situation today than they were six months ago. Now, whether that applies disproportionately to small farms is a different question. The answer seems to lie more in forward planning and access to capital when needed.

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