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Soaring transportation expenses are putting additional financial pressure on cattle producers

An ag economist says soaring transportation costs are adding to financial pressure for cattle producers. 
 
Josh Maples with Mississippi State University Extension says the increase comes at a particularly difficult time of year and is further squeezing margins.  “We’re at the time of the year where we need to be moving stuff, and we need to be moving cattle,” he says.  “It’s hitting us at a time when we’re hauling a lot of things.  And especially if you’re in drought areas, you may be hauling more hay or hauling more feed or making some cattle movement that you otherwise weren’t expecting to make.” 

Maples says diesel costs have become a key part of budget planning for cattle producers as they head into 2027, especially as prices are up anywhere from 50 to 75 percent from year-ago levels.  “This plays out at a lot of different levels across that producer’s budget,” he says.  “It’s not just how much is it going to cost me to get my cattle to the sale barn. It’s also how much is it going to cost me to run the tractor to feed hay? How much is it going to cost me to haul the feed around the farm?” 

He tells Brownfield cattle margins had been solid in recent years, but the higher transportation costs have changed that.  “The recent run here, some tighter prices and higher input cost is putting a damper on what was already, I would say a bit of a precarious situation for expansion decisions,” he says.   

According to AAA, the national average price for road diesel is $6.51 per gallon, up from $5.57 last month and $3.69 last year.