Survey findings: High diesel prices threaten farm viability
Farm Bureau’s survey findings cover more than 1,000 responses received from Oct. 7-10. Of those, 81.3% said high diesel prices have reduced their profit margins. More than 73% reported increased finan- cial stress, and nearly 43% said fuel costs have increased food production costs. The findings underscore how fuel expenses affect farmers’ ability to man- age day-to-day operations and invest in their businesses. “Farmers and ranchers are sending a
defer the 24.4-cent-per-gallon federal die- sel excise tax on that fuel through Dec. 31. However, state law still prohibits dyed diesel on public roads, preventing Cal- ifornia farmers and ranchers from fully benefiting from Trump’s order. California Farm Bureau has urged state lawmakers and Gov. Gavin Newsom to provide relief. If California suspends its 48-cent-per-gallon diesel excise tax and allows dyed diesel on roads, farmers could save about 73 cents per gallon on fuel used in farm trucks and other on-road vehicles.
High diesel prices continue to squeeze California farmers’ profit margins, adding to financial stress and forcing some to scale back field work, delay equipment mainte- nance and postpone purchases, according to a California Farm Bureau survey. More than half of respondents said cur- rent diesel prices threaten the long-term
viability of their farms, while 57.6% said savings from being able to use red-dyed diesel on public roads would help keep their operations financially viable. The issue has gained urgency follow- ing an Oct. 5 executive order by President Trump to temporarily allow red-dyed diesel to be used on public highways and
See DIESEL, Page 12
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October 21, 2026 Ag Alert 3
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