A gallon of diesel now costs more than a bushel of wheat, North Dakota Farmers Union President Matt Perdue said Friday, September 18's committee action moving the Farm Bill to the U.S. Senate floor landing amid drought and input costs that continue to squeeze farm margins across North Dakota.

Perdue offered the assessment on The Flag's "What's On Your Mind" program on AM 1100/FM 92.3 WZFG, days after the Senate committee vote advanced the Farm Bill toward a full floor debate.

What did the Senate committee do?

The U.S. Senate committee vote sends the Farm Bill to the Senate floor, the next stage in a legislative process that farm groups have tracked closely as a safety-net deadline question for producers. Perdue framed the bill's advancement against the backdrop of a difficult production year in the northern plains.

How bad is the weather picture?

Drought dominated the region's 2026 growing season. Perdue identified widespread drought through late summer as the primary driver of crop stress for North Dakota producers.

"The big story from a weather perspective of 2026 has been drought," Perdue said.

The condition reports come as soybean harvest is underway in the region — combines were running on the Warpup Farm in Warren this month. Perdue's comments reflect in-season stress rather than final harvested yield data.

What do input costs mean for margins?

The margin math is stark. Perdue pointed to fuel as the clearest indicator of the inflationary environment growers are operating in.

"Input costs are high. The cost of a gallon of diesel right now is more than the value of a bushel of wheat… and I think that's really emblematic of the environment that farmers and ranchers are operating in," Perdue said.

The comparison underscores the core problem for producers: revenue per bushel has not kept pace with per-unit operating costs, compressing margins before harvest results are even tallied.

Why is farming uniquely exposed?

Perdue drew an analogy to retail to explain the volatility growers absorb. Producers control neither their input prices, their output prices, nor reliably their own supply — three variables most businesses manage with contracts and pricing power.

"It's like you're operating a store. You have no idea how much it's going to cost you to fill the shelves," Perdue said. "You have no idea whether or not you will be able to fill the shelves… and you have no idea what you're going to be able to charge your customer for it. That's sort of the routine business of farming and ranching."

What happens next?

With the Farm Bill now headed to the Senate floor, North Dakota producers will watch whether the final legislation delivers a safety net adequate to a year defined by drought and input inflation — pressures Perdue says define the operating environment for farmers and ranchers across the state.