Fertilizer & Fuel Costs Are Crushing Farm Profits

Why It Matters

Higher input costs threaten farm solvency, reduce planting and investment decisions, and could curtail U.S. crop exports and rural economic activity if commodity prices don’t rise enough to offset elevated fertilizer and fuel bills.

Summary

Rising fertilizer and fuel prices are sharply eroding farm profitability across the Midsouth, according to LSU economist Michael Deliberto. Nitrogen costs have jumped $66–$83 per acre since January, while diesel surged from about $2.85 to $4.87 a gallon, dramatically increasing irrigation expenses—rice can consume roughly 35 gallons per acre. Even with record yields in parts of Louisiana and stronger futures, current corn prices near $4.75 cover only variable costs and fall far short of the roughly $6/ bushel needed to cover land rent and total production. Geopolitical disruptions to fuel markets and sustained input inflation mean many producers face tight margins or losses heading into 2026.

Original Description

As farmers continue to work through spring planting 2026, the rising cost of fuel, fertilizer and inputs continues to further squeeze farm budgets. Dr. Michael Deliberto, Economist, Associate Professor and Louisiana Farm Bureau Endowed Professor in Agricultural Policy at LSU joins us to highlight recent work he has done looking at crop budgets for producers in Louisiana and how it can broadly reflect issues across the country.

#commodities #farming #diesel #fuel #gasprices #fuelprices #fertilizer #agriculture #agronomy #corn #soybeans #cotton #rice #farminputs