Rising fuel prices squeeze Lexington farmers, cutting into profits

For many farmers, fuel is essential to nearly every part of the job, from running tractors to delivering produce. Now, it’s quickly becoming one of their largest expenses.

Across the United States, farmers are seeing significant increases in fuel costs. Some report spending at least $2,000 more on diesel just to keep their farms operating.

In Lexington, farmer Jim Coleman, owner of Coleman Crest Farms, says he typically spends around $6,000 a year fueling his trucks and tractors. But rising prices are pushing that number much higher.

According to the U.S. Energy Information Administration, gas prices are up about 90 cents compared to this time last year, while diesel has increased by roughly $1.87.

Coleman says those increases translate to a sharp jump in his own costs—about 65% more for diesel and nearly 40% more for gasoline.

“If nothing changes, my overall fuel costs are going to be up over $2,500 for the year,” Coleman said. “That’s going to hit me right there in the profit.”

The challenge is that farmers often set their prices months in advance, leaving little room to adjust when expenses rise unexpectedly.

“I’ve already locked in my prices with my customers,” Coleman said.

That leaves farmers searching for ways to absorb the added costs, often forcing them to be more creative and efficient in their operations.

At the same time, higher fuel prices are also affecting consumers, which can further strain farmers’ bottom lines. As families spend more at the gas pump, they may become more cautious about how much they spend on fresh produce.

“When people are paying $100 to fill up their SUV, they’re going to be more price sensitive at the store,” Coleman said. “I’m taking a beating both at retail as well as here on the farm.”

With fuel costs remaining unpredictable, Coleman says the pressure isn’t easing anytime soon. For some small farms, continued increases could lead to difficult decisions about their future.