Record diesel prices are taking their toll on trucking companies and farmers, whose hardships will be passed on to American consumers.
“At least 16 trucking, delivery and transportation companies entered bankruptcy proceedings between late August and Sept. 21,” U.S. freight and logistics news company FreightWaves recently reported. “The filings come as trucking companies continue navigating a freight environment marked by rising diesel fuel prices and other elevated operating costs.”
FreightWaves identified Chapter 11 bankruptcy filings by the following trucking companies: Globemaster Incorporated, Xoco Transport, Jett Transport & Materials, CLJ Transporting, Mill Creek Logistics-Illinois, RP Hay Hauling, Truckload LLC and Pacer Transport.
Xoco Transport, a Texas-based carrier, operates more than 40 tractors, 65 drivers, and 70 trailers. “Globemaster operates 51 power units and reported approximately 3.3 million annual miles in its most recent regulatory filings,” FreightWaves noted. CLJ Transporting is an Amazon partner with 18 trucks and 30 drivers.
The bankruptcy wave coincides with widespread job losses. “The broader freight sector has also seen a wave of layoffs amid the fuel surge, with FreightWaves reporting close to 2,000 layoffs across delivery firms, manufacturers, and packaging companies over the past few weeks,” Newsweek reported.
Harvard economist Willy C. Shih reiterated that rising diesel prices are a major driver of these challenges. He stated it now costs about $3,000 per truck to transport goods nationwide after diesel reached $6.50 per gallon. September 2025 average diesel prices stood at $3.74 per gallon.
Shih warned that these additional costs are severely impacting farmers and will ultimately raise prices for virtually everything Americans buy. “If you think that isn’t going to get passed on to consumers, think again,” Shih said. “Nobody else along the chain can afford to eat that increase in costs.” He added that high diesel expenses compound existing struggles during harvest season, as farm machinery relies heavily on diesel fuel.
Farmers face compounded pressures beyond rising diesel costs. AgWeek reported significant fertilizer price jumps: In 2024, urea cost $415 per ton, monoammonium phosphate was $775 per ton, potash $415 per ton, ammonium sulfate $420 per ton, and 28% fertilizer (urea ammonium nitrate) $315 per ton. By 2026, these prices had surged to $570 for urea, $950 for monoammonium phosphate, $455 for potash, $460 for ammonium sulfate, and $385 for 28% fertilizer.
An assistant professor at South Dakota State University noted nitrogen, phosphorus, and potassium prices rose $40 to $175 per ton in South Dakota between 2024 and 2026. South Dakota farmer Charleen Bowne attributed the fertilizer cost spike to ongoing global conflicts, stating: “You look at the fertilizer cost from last year to this year, it’s a $300 to $400 difference, and it has to do with the war that’s carried on as long as it has.”
Illinois farmer John Yeley reported three farmers in his county folded this year, adding that high diesel prices have worsened existing challenges. “This is the first year in my adult life that we have not bought an entire transport load either spring or fall due to fuel cost,” Yeley said, explaining he now buys diesel in smaller batches—1,000 or 1,500 gallons at a time—to hope for price drops.
In Wisconsin, some agricultural producers face dire prospects. Joel Greeno told The Country Today he has taken on significant credit-card debt to cover equipment and fuel expenses after harvest, facing lawsuits from creditors and potential bankruptcy. “For a lot of guys, this may just be the end,” Greeno said.
The escalating costs threaten more than livelihoods. Farmers’ suicide rates have risen sharply over decades as family farms face financial ruin. With crop production and transportation expenses projected to drive up grocery prices nationwide, Americans are bearing increasing burdens.
Trump recently labeled high gas prices “a very inexpensive price to pay” for policies he has pursued, including the war against Iran. The people affected by these economic strains would disagree.