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Energy market volatility could impact the bottom line for farmers in 2026

An ag economist says volatility in the energy market could have a significant impact on farmers’ bottom line in 2026.

David Widmar with Agricultural Economic Insights says he’s watching how higher diesel prices could have an effect on the overall ag economy.

“If fuel prices go up, the cost of transporting things goes up, so we have to keep an eye on inflation. We could even see the Fed having to adjust. This is all going to be a part an energy conversation that plays out for several months, if not years.”

He tells Brownfield it leaves a lot of uncertainty in the market.

“We could see commodity prices go higher with other commodities,” he says. “Or do we see commodity prices go higher because we might be using more of our grains for fuel production? It’s pretty hard to really get a good feel for where we’re going to be headed.”

Widmar says producers may need to adjust their management plans ahead of the growing season to prepare for increased volatility. 

AUDIO: David Widmar, Agricultural Economic Insights