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Report by Democrats estimates large increases in costs for farmers

A red tractor in front of a red barn.
Sanzzu
/
Wikimedia Commons
Farmers have been harvesting while facing uncertainty this year.

Indiana farmers are on track to spend nearly $141 million more on diesel fuel during planting and harvesting this year compared with 2025, according to a new congressional analysis.

The report, released Oct. 22 by Democratic staff on the U.S. Congress Joint Economic Committee, estimates Indiana's diesel costs for five major crops have increased 88.5 percent from last year.

That ranks Indiana sixth nationally in total additional costs and seventh in percentage increase.

Nationally, the committee estimates farmers will spend approximately $2.4 billion more on diesel during the spring planting and fall harvest seasons, a 68 percent increase.

The analysis uses diesel prices from AAA, agricultural fuel-use estimates and federal crop acreage and harvest data to calculate the additional costs of planting and harvesting corn, soybeans, wheat, cotton and rice.

The figures are estimates, not a final accounting of farmers' actual expenses.

Read more: Farm group says expanding imported beef has only lowered prices marginally

The committee's Democratic staff attributes the increase to energy-market disruptions resulting from President Donald Trump's war with Iran.

The report also estimates that filling a typical 750-gallon farm fuel tank in Indiana costs $2,192 more than during last year's peak harvest-season prices.

Refilling a typical tractor costs an estimated $357 more, while a grain truck costs $292 more.

Those additional expenses come as Indiana farmers are already facing financial pressure from high production costs and uncertain crop prices.

A separate spring outlook from Purdue University projected Indiana farm fuel and oil expenses would increase $137 million in 2026, although that estimate covers a different set of expenses.

Read more: Diesel fuel inventories continue to decrease, causing prices to surge

Indiana Gov. Mike Braun took steps in September to ease some of the burden on farmers by temporarily allowing them to use tax-exempt dyed diesel in vehicles transporting agricultural products on public roads.

The change allows farmers to use fuel normally restricted to off-road equipment for certain transportation needs during the state's energy emergency.

However, the state's broader gasoline tax suspension does not extend to ordinary highway diesel.

The congressional report does not account for every fuel-related expense farmers face, including transporting crops to market and operating diesel-powered equipment outside planting and harvesting.

Its authors warn that continued high fuel costs could add to financial pressure on farmers and eventually contribute to higher food prices.

The report does not quantify how much those costs might affect grocery prices.

A chart listing the top 20 states by overall increase in planting and harvesting diesel costs
Indiana ranks sixth nationally in total additional costs and seventh in percentage increase.

Clayton Baumgarth is a multimedia journalist for Indiana Public Media. He gathers stories from the rural areas surrounding Bloomington. Clayton was born and raised in central Missouri, and graduated college with a degree in Multimedia Production/Journalism from Drury University.
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