LUBBOCK, Texas (RFD NEWS) — Rising activity in the oil and gas sector is signaling renewed pressure on farm input costs, as higher energy prices and production expenses begin to work their way back into diesel, fertilizer, and chemical markets.
New data from the Dallas Federal Reserve shows energy activity expanded in the first quarter of 2026, with its business activity index turning sharply positive. At the same time, input and development costs increased, reflecting a more expensive operating environment for energy producers.
That matters on the farm because fuel and fertilizer costs are closely tied to energy markets. Diesel prices have already moved higher, and fertilizer production — especially nitrogen — remains sensitive to natural gas costs.
Oil price expectations near $74 per barrel suggest energy costs are unlikely to retreat significantly in the near term, even as production levels remain mostly flat. Elevated uncertainty in the sector also points to continued volatility.
For producers, the shift reinforces the need to closely monitor input costs as 2026 budgets take shape.
Farm-Level Takeaway: Higher energy activity likely keeps fuel and fertilizer costs elevated.
Tony St. James, RFD NEWS Markets Specialist
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
October 22, 2025 12:07 PM
·
API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
October 21, 2025 12:39 PM
·
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
October 21, 2025 11:22 AM
·
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
October 20, 2025 01:32 PM
·
Talks highlight the widening role of agriculture in U.S.–India trade policy, though neither side appears ready for major concessions before tariff issues and oil imports are resolved.
October 20, 2025 11:28 AM
·
Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.
October 20, 2025 11:22 AM
·
