How rising diesel prices affect crop production costs

COLUMBIA, Mo. — Although many farms are starting the planting season with bulk tanks full of sub-$3-per-gallon diesel purchased over the winter, the first refill this spring could cost $1.50-plus per gallon more than they paid for their last delivery.

Rising fuel costs are another worry on top of skyrocketing fertilizer prices. The impact of high fuel prices on a farm’s bottom line can be identified with an enterprise budget and might not be as large as many farmers expect, says Drew Kientzy, a University of Missouri Extension senior research analyst.

“For a fuel-intensive operating style that includes two passes with tillage tools, planting, two spray applications, harvesting, and trucking corn yielding 180 bushels per-acre, roughly 7.5 gallons of fuel are used per acre,” Kientzy said. “The per acre impact of the recent fuel price changes is $11.25 per acre higher than projections made in the fall, bringing total fuel costs from $21.75 to $33 per acre today.” The cost of fuel is often front of mind when considering overall machine-related expenses. The 2026 MU Extension Missouri Corn Budget estimated a machinery operating cost of $82.99 per acre, based on off-road diesel price estimates in November 2025 of $2.90 per gallon. When adjusted for the market action over the past five months, machine operating costs rise to $94.24 per acre.

Kientzy points out that repairs, depreciation and interest are the largest equipment-related expenses on some farms. “The 2026 Missouri corn budget estimates that fuel makes up 18% of total machinery costs and 5% of total production cost at today’s diesel price,” he said. “If a farm had all inputs except fuel locked in on Jan. 1, net returns to land decline from $120 per acre to $108 based on recent changes in fuel cost alone.”

MU Extension’s Crop Budget Spreadsheet can help farms pinpoint the drivers changing the cost of production on their farms. For all major Midwestern crops, users can customize application rates for fertilizer, seed and crop protection chemicals, as well as the prices paid by their operation. In addition, drop-down menus let users select from more than 110 implements and 20 power sources to quickly estimate annual operating and ownership costs for farm equipment on a per acre basis.

“Producers are likely to face many more price changes before the crop is marketed, which is why we encourage farm operations to track their production costs to pinpoint their break-even while making marketing decisions,” said Kientzy.

More information about the Missouri crop and livestock budgets.

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Cost of equipment operation.