DAIRY FUEL SURVEY: Nonstop non-crop fuel up $0.53/cwt,milk-check surcharges rise $0.20/cwt too

CHILTON, Wis. — The American Dairy Coalition submitted its Dairy Farm Fuel Cost Impact Report to USDA’s Harvest Fuel Relief Team on Nov. 1 in response to Secretary Brooke Rollins’ request for information on commodities beyond the Title I crop acreage framework announced on Oct. 19.

The Report is based on ADC’s Dairy Fuel Survey (Oct. 20–30, 2026) with 372 respondents, ranging from 50 to more than 5000 cows, representing an estimated 204,600 head for an average herd size of 550. Supporting economic context comes from ADC’s broader Dairy Farm Pulse 2026 Economic Outlook Survey (Oct. 15-30, 2026), which is still undergoing full review with 459 participants representing 215,730 cows and average herd size of 470.

“Milk doesn’t have a harvest season,” said Sherry Bunting, ADC Dairy Market Analysis & Policy Advisor. “The cows are fed, the barns are cleaned, and the milk moves every day. A crop-acreage payment captures only part of the nonstop non-crop exposure to higher fuel cost on a dairy farm.”

As one survey respondent commented, “crop harvest is about one-third of total dairy fuel use. Manure application was done when fuel was at its peak.” Another estimated crop harvest accounted for just 25% of the dairy’s ongoing on-farm diesel cost. “We use it everyday, 365 days a year, not just during planting and harvest,” another stated. For non-harvest on-farm fuel costs since July (excluding milk hauling), 61.8% of dairy farms in the survey reported increases of 30% or more and 23.5% reported increases of 50%.

In the final report, ADC translates the median reported $6000 increase in monthly fuel cost since July (excluding crop harvest and milk hauling) for the survey’s weighted-average 550-cow herd. Using USDA’s July–September average production of 2062 pounds (20.62 cwt) per cow per month, this equates to $10.91 more fuel cost per cow per month, or $0.53 per hundredweight (cwt) of milk.

These costs cover daily activities such as mixing and delivering feed to cattle, cleaning pens, and handling, hauling, and applying manure, moving livestock, plus increases in cost of delivery for feed and essential supplies. Furthermore, these costs are in addition to Title I crop harvest costs (i.e. corn and soybeans) and do not include milk-check deductions for hauling milk off the farm.

Milk-check deductions show ongoing impact also

Milk must move continuously year-round, with hauling daily, multiple times a day, or every other day depending on a dairy’s production volume. The ADC Survey handled this cost area separately.

Among respondents with comparable per-cwt fuel surcharges, the average rose from $0.267/cwt in January to $0.403/cwt in July and $0.473 in October. That is an average increase of $0.203/cwt (approximately 76%) in fuel surcharges being deducted from milk checks beyond the regular hauling deduction and stop charge. Of those comparable responses, 83.3% showed an increase of 50% or more.
Others documented increases in fuel surcharges reflected per mile from $0.44 to $1.11 with increases in the flat-rate stop-charge and regular underlying hauling deduction of 8%.

All-Milk vs. Mailbox Price

These increases are occurring while milk prices have declined, and the gap between USDA’s gross All-Milk price and the net Mailbox price is widening. From January–July 2026, the NASS All-Milk price averaged $19.86/cwt (down $2.16 from a year earlier), while the All Federal Order Areas AMS Mailbox price averaged $18.96/cwt (down $2.46). The average gap widened from $0.59/cwt in the same period of 2025 to $0.90/cwt in 2026. By July, it stood at $1.07/cwt.

The NASS All-Milk price used in the Dairy Margin Coverage calculation does not reflect hauling or other deductions. The Mailbox price reported by AMS includes the deductions. July is the most recent USDA Mailbox data as this report lags the All-Milk price by several months.

Higher fuel costs hit farms already under pressure

In the ADC Dairy Farm Pulse Survey, 59.1% of 459 respondents representing 215,730 cows said their dairy was financially weaker than three years earlier, including 31% who described it as significantly weaker. The average herd size for this broader survey was 470 cows.
When asked to identify their top three profitability pressures, 92.5% cited inadequate milk price and margin, 60.2% cited rising crop-input costs including fertilizer and fuel, 35.7% machinery repair and replacement, and 25.6% cited labor.

Approximately 85% reported using revenue from cattle and calf sales either to pay recurring dairy bills they otherwise could not pay or to support overall cash flow. However, dairy farmers noted the rise in the dairy’s fuel costs was consuming 60 to 80% of that revenue.

Hay and forage require multiple harvests

Non-Title I perennial hay and forage were addressed separately in the ADC Survey. Unlike annual Title I crops harvested once, the same acre of hay forage is often cut four or five times, each cutting requiring another full set of fuel-consuming operations. ADC recommends recognizing this through harvested-acre passes (acres × cuttings) so dairy and other livestock producers are not overlooked.

Request to USDA

ADC asked USDA to establish a dairy relief rate based on hundredweights of milk marketed, paired with appropriate recognition of repeated hay/forage harvests, while retaining the per-acre approach for eligible Title I crops. USDA has used a per-cwt dairy assistance payment along with Title I crop acreage payments in prior programs, including the 2019 Market Facilitation Program. In the 2019 MFP, hay acreage was also included using county averages.

Of the Dairy Fuel Survey respondents, 77% milked fewer than 1000 cows, 14% milked 1000 to 2499 cows, 6% milked 2500 to 4999 cows, 3% milked 5000+ cows. This is statistically representative of the stratified U.S. dairy industry. Respondents were identified by Federal Milk Marketing Area with 57% in the Midwest (including Upper Midwest and Central FMMOs); 31% were in the Northeast and Mideast, with 3% from the Southeast region and 9% either choosing ‘unsure’ or not answering the geographic question.

The full report is available at https://qrco.de/Dairy-Fuel-Report and the ADC letter is available at https://qrco.de/ADC-Letter

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About American Dairy Coalition

ADC is a farmer-led national organization advocating for federal policies that support the long-term viability of U.S. dairy farms.

Media Contact:
Sherry BuntingDairy Market Analysis & Policy AdvisorAmerican Dairy Coalition 717-587-3706americandairycoalition@gmail.com