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Diesel prices in North Dakota reached a record high of $6.13 per gallon on Sept. 17, according to the American Automobile Association (AAA), adding pressure to industries and people that rely on fuel to transport goods and operate equipment. As of Monday, Oct. 26, diesel averaged $6.11 per gallon, with crude oil approaching $100 a barrel and regular gasoline falling 6 cents.
President Donald Trump and Gov. Kelly Armstrong have taken action and signed executive orders aimed at providing relief, but the impact of those measures will vary across industries.
Travis Hermann, a business agent for the International Brotherhood of Teamsters Local 638 in Bismarck, said the executive orders will not relieve pressure on truckers and their companies.
"As far as Governor Armstrong's executive order, it primarily helps agriculture," Hermann said. "The people that are already using the dyed fuel in the field. It extended that for those people, which definitely helps them, but it does not help companies that are running trucks up and down the road."
Hermann continued, "The Northern Improvements, UPS's of the world, those types of places, they're not going to be able to access cheaper fuel. Same goes for anyone that has an independent truck. They're still going to have to pay those higher fuel rates. I would've liked to see this be able to be used by everyone, not just a certain pocket of people"
The effects of high prices are also a concern for members of the Teamsters Union as companies could be forced to make hard decisions that affect employees and consumers, according to Hermann.
"It definitely comes back to conversations we have with our members that are worrying about potential layoffs if these high gas prices continue or go higher," Hermann said. "Companies are going to have to make hard decisions based on those fuel surcharges to customers. The customers have to decide if they want to pay them or not, and what that looks like in the long term."
Hermann said prolonged and higher fuel costs could also make it more difficult for unions to negotiate contracts for their members if companies experience declining profits.
"We as a union want these companies to be profitable and we want our people working," Hermann said. "We want them to be able to be out there earning a paycheck and continuing their benefits and pensions. If these companies are not profitable, we can't negotiate good contracts for our people because the money isn't there. So this affects things years down the road possibly for a company."
Armstrong's executive order was announced Sept. 29 and will run through Nov. 30. The order temporarily reduces the state tax from 23 cents per gallon on regular highway diesel to 4 cents per gallon on red-dyed diesel, potentially saving farmers up to 19 cents, according to the North Dakota government.
On Oct. 20, Sen. John Hoeven issued a statement following the White House's announcement of an $8 billion Harvest Fuel Relief program funded by the Commodity Credit Corporation. The program will provide assistance similar to the Farmer Bridge Assistance program, according to the statement.
While the measures are expected to provide some relief for farmers, the prolonged effects of high prices and other input costs remain a concern.
Matt Perdue, president of the North Dakota Farmers Union, said more long-term solutions are needed.
"I think looking at the challenges that farmers have had, a lot of that is driven by high input costs," Perdue said. "Farmers across the state will tell you that they need support and assistance. I think the harvest program is frankly the best solution we have right now, but just because it's the best solution doesn't mean it's a good long-term solution."
Perdue continued, "We need a more stable, more certain geopolitical environment and a cost environment that actually provides farmers a real chance at a break. The question about how challenging 2027 will be will persist. The program, at least what we have seen about it, does not cover the diesel costs that are incurred by cattle producers. Certainly for their farming operations, but not those costs for production, cattle, hauling, et cetera. There are gaps in the program and we're going to work with the administration to close some of them."
Farmers have limited options for reducing their fuel usage, but Shane Anderson, a cattle rancher and farmer near Towner, said he plans ahead.
"I have not personally made any management changes that affect my diesel usage. We'll try to be as efficient as we can with it and maybe plan forward if we continue to see higher prices. It's always something we look at, whether prices are high and low."
Planning ahead and buying in bulk when prices drop is one way Anderson prepares and manages his costs.
"We can make some management practices and some changes, but a lot of it, we're kind of boxed in," Anderson said. "So outside of guessing what future prices are going to be, buying in bulk when we see a dip in prices so we know what our costs are gonna be, that's always an option."
Looking toward next year's growing season, Perdue said some farmers and producers have already struggled with the state of the economy. Without any long-term solutions or assistance, the next harvest season could be more difficult.
"The reality is that the input costs and the levels that they're at today are not sustainable. Input costs are high for farmers and ranchers. We're in a period where farmers are already experiencing economic stress. Higher input costs are really deepening those losses and if we don't have a better opportunity to break even in 2027, you're going to see some farmers who are unable to get the operating capital that they need to move into the growing season."
As food remains a concern for consumers, particularly heading into the holiday season, higher costs throughout the supply chain do not necessarily translate into higher earnings for farmers, according to Perdue.
"Consumers are paying more at the grocery store, but that's not ending up in the farmer's pocket," Perdue said. "That's ending up in the pockets of folks in the middle. The markets that farmers buy and sell to are heavily consolidated. It's really important for consumers to understand that they're facing higher costs at the grocery store and recognize that the money is not ending up in the farmers' pockets. Farmers and ranchers are facing very significant challenges right now."
Higher fuel costs also affect consumers beyond what they pay at the pump. Transportation is an everyday expense, and Hermann said those additional expenses will influence how much consumers spend elsewhere.
"If they have to drive to work, get kids to practice, to school and all those things, they're driving and their input costs for fuel are higher," Hermann said. "That's going to affect their ability to buy more products which will then be brought to them by delivery trucks. If the general public has less money because they're paying higher and higher amounts for their fuel, that can reduce volume for large shipping companies."
The cost of shipping can also affect other parts of the delivery process, Hermann said. As companies cut back due to high costs and consumer demand, it sometimes comes at the cost of wages, adding to the pressure drivers face.
"Sometimes we see free shipping. No shipping is ever free," Hermann said. "There are things that have to be given to be able to give the public free shipping on things. When the delivery driver shows up at your doorstep, they're trying to work as hard as they possibly can to deal with all those stresses that are put on them."
"Fuel impacts every good that consumers touch. Whether it's food products, animal protein, wheat, grain, corn or soybeans," Anderson said. "Every consumable product, whether it's from Amazon, electronics, clothes, everything moves by truck in this country. Truck, train, airplane - everything burns fuel. It's agriculture and all industries, so when we say it affects everybody it really does affect everybody, whether you see it directly or indirectly."