For grain <a href="https://bitcomme.com/moburst-appoints-etgar-shpivak-as-vp-of-marketing/” title=”Moburst Appoints Etgar Shpivak as VP of Marketing”>marketing decisions, the relevant question is often whether the higher bid offsets the additional hauling expense. The Iowa State “Grain Truck Transportation Cost Calculator” estimates that trucking grain 30 miles will cost an extra $0.11 per bushel, ultimately impacting marketing decisions. | Photo by Agricultural Trucking Blog
October 14, 2026
While there have already been countless efforts to quantify the economic- and farm-level effects of record-high diesel prices since reaching $6.53 per gallon in late September, how are those higher prices cutting into your grain marketing plans?
While each farm operation faces a different set of unique grain storage and marketing opportunities, consider a simple scenario — hauling stored grain out of on-farm bins. Using the Iowa State Grain Truck Transportation Cost Calculator, we can consider how the year-over-year change in diesel prices affects transportation costs.
In this scenario, the operation is hauling grain 30 miles for a 60-mile round trip. Last September, when diesel prices averaged $3.75 per gallon, total transportation costs were $0.46/bushel.
As seen in Figure 1, the largest cost category was non-fuel operating costs of $0.20 per bushel, which included repairs/maintenance, tire costs, lubrication, and labor. Ownership costs — capital recovery, insurance/license — were nearly $0.14 per bushel. Finally, direct fuel costs were nearly $0.13 per bushel.
Using the average price of $6.53 per gallon, fuel costs are up 84.6% on a per bushel basis increasing to $0.24. That increase, carried through to total costs, results in a 22% overall increase for trucking grain in this scenario.
The marginal marketing decision is often where to market bushels – which buyer to court. With a 22% increase in total hauling costs, that $0.11/bushel increase in fuel costs affects which grain bid is most attractive given transportation distance.
For grain marketing decisions, the relevant question is often whether the higher bid offsets the additional hauling expense. Figure 2 also shows that higher diesel prices added roughly $0.11 per bushel to a 60-mile round trip scenario.
This illustrates how one factor can quickly change the attractiveness of alternative grain bids and the overall success of a grain marketing plan.
For farmers, a large share of the higher fuel costs cannot be avoided. Those include planting, harvesting, and hauling the grain away from the field. But higher fuel prices could change some managerial decisions, including tillage programs and where and when to market and deliver grain.
Earlier this year, we noted that higher interest rates increased the opportunity cost of storing grain. Those per-bushel costs can add up quickly when storing hundreds of thousands of bushels for several months.
Higher diesel prices add another dimension of consideration. In short, a $0.25 or $0.50 carry or basis appreciation isn’t as appealing in 2026 as it was just a few years ago.
Finally, farmers aren’t alone. Throughout the agricultural supply chain — and the global economy — the cost of moving goods and services has changed considerably over the last eight months.
Whether it’s moving ag commodities by rail or barge, getting packages delivered to your house, or planning a vacation, conversations about what’s unavoidable and what’s adjustable are underway. The longer diesel prices remain elevated, the more dramatic the potential adjustments will be.
