Diesel Costs Soar for Oregon Farmers

Pear growers struggle to absorb skyrocketing fuel prices during peak season

Apr. 14, 2026 at 12:27am

A minimalist illustration using geometric shapes and primary colors to conceptually represent the financial pressures facing Oregon farmers due to skyrocketing diesel prices, without any text or identifiable elements.Soaring diesel prices squeeze Oregon's family farms, forcing them to absorb higher fuel costs during peak growing season.Hood River Today

Diesel prices have nearly doubled in the last 90 days, according to a Hood River, Oregon farmer who says he can't afford to stop running his tractors during one of the busiest parts of the year. Farmers like Mike McCarthy are absorbing the higher fuel costs, which have increased their operating costs by 40% in the last few years, and worry that this could price some family farms out of the industry.

Why it matters

The sharp rise in diesel prices is putting significant financial strain on small and medium-sized farms in Oregon, which operate on tight margins and have limited ability to pass along increased costs to consumers. This could lead to more family farms going out of business and consolidation in the agriculture industry.

The details

Mike McCarthy, who has been farming pears outside of Hood River for nearly 50 years, says his tractors will have to run 10-15 trips down each row of his 400-acre orchard through the spring and summer. Even with the cost of fuel going up, he can't afford to not drive his tractors, so he is absorbing the higher fuel costs. Smaller farmers may be spending $2,000 more per month on fuel, while larger farmers are spending up to $10,000 more. Farmers have no ability to pass along these increased costs to consumers, as they have no impact on the prices they receive for their products.

  • Diesel prices have nearly doubled in the last 90 days.
  • This is a busy time of year for pear farmers, as the warm weather has caused the trees to bloom early.

The players

Mike McCarthy

A Hood River, Oregon farmer who has been growing pears for nearly 50 years.

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What they’re saying

“This is really a busy time of year.”

— Mike McCarthy, Pear Farmer

“Smaller farmers might be spending $2,000 a month more in fuel and some larger farmers are spending $10,000. The challenge right now is things are really tight in agriculture. There is not much margin. The fuel thing is making things tight right now.”

— Mike McCarthy, Pear Farmer

“We have no impact on the price we receive for our products. If our costs go up, we get no addition price for our product. We just figure out eat it. And with the challenging time we have had in agriculture, it's getting thinner and thinner all the time.”

— Mike McCarthy, Pear Farmer

“What I've seen more than anything is farmers quitting and leasing out their farms to larger growers.”

— Mike McCarthy, Pear Farmer

What’s next

McCarthy says he is going to keep trying to make ends meet, but worries that if fuel prices don't come down, this could price some family farms out of the industry.

The takeaway

The skyrocketing diesel costs are putting immense financial pressure on small and medium-sized farms in Oregon, forcing them to absorb the higher fuel expenses during their busiest season. This could lead to more family farms going out of business and further consolidation in the agriculture industry, reducing competition and diversity in local food production.