New Survey: High Diesel Costs Forcing California Farmers to Make Tough Cuts

A new California Farm Bureau survey of more than 1,000 farmers and ranchers found that diesel costs are putting significant financial strain on agricultural operations statewide, raising production costs and squeezing already narrow margins.

More than half of California farmers say lower diesel prices would help keep their operations financially viable, while three out of four report increased financial stress from diesel prices.

Additionally, 40% of farmers are reducing field work because of diesel costs. Farmers say diesel savings would be reinvested into workers, operations, and farm infrastructure.

Diesel is essential to modern agriculture, powering tractors, harvesters, trucks, and other equipment used every day on farms and ranches. As fuel costs rise, producers say they are being forced to make difficult decisions about where to cut expenses, delay investments, and scale back operations.

“Farmers and ranchers are sending a clear message: diesel prices matter,” says California Farm Bureau President Shannon Douglass. “Diesel powers the equipment that plants, irrigates, harvests and transports our food. These survey results show the financial pressure fuel costs are placing on family farms across California. Farmers won’t survive if something doesn’t change.”

When asked, farmers mentioned the different concerns they have around rising diesel prices:

• “We have to sell property because we can no longer afford to pay for fuel for the equipment. With all the rising costs, we are months away from foreclosure.” – Karen S.
• “We are on razor-thin margins, and income is seasonal. Spiking of big inputs like diesel causes uncertainty, delays plans and makes you think of where you can cut to offset the diesel price.” – Bryan A.
• “Increased diesel costs have eliminated any potential profit from our 2026 crop.” – Adam E.

At a time when farmers and ranchers are facing rising costs for other essential inputs, reducing diesel expenses could provide critical flexibility in already tight operating budgets. Respondents indicated savings would be reinvested directly into their businesses through employee wages, equipment upgrades, infrastructure improvements, and other operational needs that help farms remain productive and competitive.

For more, continue reading at cfbf.com.