{
  "id": 7293431,
  "title": "Analysis-US rail fuel surcharges on grain hit record highs, squeezing farmers in harvest season",
  "url": "https://urgent.news/2026/09/14/analysis-us-rail-fuel-surcharges-on-grain-hit-record-highs-squeezing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-14T10:12:46.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/analysisus-rail-fuel-surcharges-on-grain-hit-record-highs-squeezing-farmers-in-harvest-season-4899075"
  },
  "original_language": "en",
  "account": "Rail fuel surcharges on U.S. grain shipments have reached record highs, putting significant pressure on farmers during the harvest season. The average fuel surcharge rate on grain shipments jumped to 48 cents per mile per rail car in mid-September, a staggering 153% increase from the same period last year, according to USDA data. With diesel fuel surcharges becoming a larger part of grain shipping costs due to the U.S.'s war with Iran driving up crude oil and refined product prices, farmers are facing higher transportation costs as they struggle with increased production expenses. As corn and soybean harvests commence, farmers find themselves squeezed by these escalating costs. Gary Mershishaski, a wheat and sorghum farmer in Kansas and head of U.S. Wheat Associates, noted that the grain elevator basis at his local facility was around 70 cents per bushel below Chicago Board of Trade K.C. hard wheat futures, while it usually stands closer to 40 cents under. Brent oil futures surged above $104 a barrel last week, the highest level since mid-May, due to fears surrounding the escalating Iran conflict. Frayne Olson, a crop economics expert at North Dakota State University, emphasized that these rapidly changing fuel prices are particularly challenging for farmers who have slim profit margins of just a few cents per bushel. Railroads levy surcharges on top of long-haul freight tariffs, with CSX and Norfolk Southern yet to respond to requests for comment. The railroads aim to use surcharges to offset fuel costs and mitigate exposure to fluctuating fuel prices. However, as the On-Highway Diesel Fuel Index has risen by about 60% year-over-year, surcharges have escalated accordingly, contributing to the overall increase in transportation costs for grain shipments. Railroad analysts predict that surcharges will remain high throughout the remainder of the year.",
  "summary": null,
  "key_points": [
    "U.S. grain rail fuel surcharges hit record highs at 48 cents per mile per rail car",
    "Diesel fuel surcharges rising due to Iran conflict driving up crude oil prices",
    "Farmers face higher transportation costs with slim profit margins of a few cents per bushel"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}