Diesel prices could stay above $6.50 through 2027, pressuring farmers

  • Farmers face prolonged diesel-price pressure as global supply disruptions keep fuel costs elevated.
  • $6.50: AAA put the national average diesel price above this level this week.
  • Trump administration officials are examining whether a full or partial diesel export ban is feasible.

Farmers could face diesel prices in the $6-to-$7-per-gallon range through 2027 or longer as crude oil prices, limited refining capacity and disruptions to global fuel supplies keep pump prices elevated. Gregg Ibendahl, a farm management specialist with Kansas State University Extension, said resolving international conflicts and restoring normal fuel shipments would be the most effective remedy. AAA data put the national average diesel price above $6.50 a gallon this week, sharply higher than a year ago. The Trump administration is examining whether a full or partial diesel export ban could provide relief, while Iowa Senator Chuck Grassley and Representative Ashley Hinson support an export restriction because of its impact on farmers. Energy analysts and the American Petroleum Institute oppose the idea, warning that reduced exports could prompt refiners to cut production, tighten supplies and push prices higher later. The Kansas Reflector reported that even a best-case market adjustment could take six months, while Ibendahl said returning to earlier price levels could take up to two years.

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