How Montana’s Agriculture Sector Can Cut Costs with Smarter Fuel Use

Montana’s agriculture sector plays a vital role in the state’s economy, generating over $4.5 billion in recent years, with $2.6 billion from crops and another $2 billion from livestock. 

Farming on this scale requires fuel, and a lot of it, over $333 million in 2017. From planting and harvesting to transporting goods to market, diesel powers nearly every aspect of a farm’s operation. And with fuel costs among the top expenses for most producers, alongside seed, chemicals, and fertilizer, smarter fuel use isn’t just good practice—it’s an economic imperative.

“Fuel is make or break,” says Jason Bliss, District Sales Executive at Farstad Oil. “Whether farmers like to admit it or not, they know it’s essential to running their operation. Managing it well can have a big impact on their bottom line.”

Through better fuel efficiency, better storage practices, and smarter technology usage, Montana farmers can increase their profitability. 

Fuel Costs in Farming: A Major Expense That Can’t Be Ignored

Fuel touches nearly every part of a Montana farm’s operation. First, there’s the fieldwork, equipment requires significant amounts of fuel. Then there’s transportation. Farmers rely on semitrucks to haul their crops or livestock to market, and in a state as large and rural as Montana, that’s no small feat.

“From seeders to combines to semitrucks hauling grain or livestock, fuel powers it all,” says Bliss. “And with operations often spread across hundreds or thousands of acres, consumption adds up quickly.”

Fuel price volatility plays a big role in how farmers plan their budgets. That’s where fuel contracts come into play. By locking in a set price, say $2.75 per gallon for the upcoming season, farmers can gain some predictability. It allows them to budget with confidence and avoid being blindsided by sudden price hikes.

“By contracting a portion of their fuel needs, farmers can lock in a price and plan more confidently,” Bliss explains. “I usually recommend covering 50–60% of expected usage with a contract. This strategy gives them some protection against market spikes while still keeping flexibility to take advantage of dips in the spot market. It’s one of the biggest variables in agro planning, and smart farmers look for ways to manage that risk without overcommitting.”

How Fuel Efficiency Helps Farmers Save Money

Over the years, fuel costs have gone up, but fuel manufacturers have worked hard to improve fuel efficiency. Advances in fuel formulation and engine compatibility have allowed heavy equipment to run more efficiently, getting better mileage per gallon (MPG). Equipment that once ran at four miles per gallon, might now get five. That’s a 20% improvement, which makes a big difference on large farms that run machinery all day. This kind of evolution in fuel technology helps farmers get more out of every gallon, which is essential when fuel remains one of their biggest operating expenses.

“Premium fuels offer better miles per gallon and cleaner engine performance,” says Bliss. “You might pay a little more per gallon, but your equipment runs better, lasts longer, and requires fewer filter replacements.”

Lubricants also play a big role. The right lubricants can enhance equipment performance, reduce wear and tear, and even contribute to better MPG. That’s especially important when you’re running seven-figure machinery in the field. 

“While more money is spent on fuel, lubricants are just as important when it comes to improving fuel economy,” Bliss notes. “High-quality lubricants protect the engine and extend the life of your fuel filters, so everything works more smoothly and efficiently.”

Top Fuel-Saving Strategies for Montana’s Farmers

Fuel Storage

Many fuel losses begin at the tank. Bliss sees common mistakes, like buying cheap or used tanks without understanding the risks. 

“From a safety perspective, some farmers will opt for single-wall tanks instead of double-wall tanks,” he says. “If there’s a leak or failure with a single-wall tank, you’re looking at potential fuel loss and environmental issues.”

Another common issue is inadequate venting. Some tanks don’t have proper vents, which can cause problems in the summer when temperatures rise. If the tank is filled beyond 90% capacity without proper venting, pressure can build up and force fuel out,  wasting product and creating a safety hazard.

“I always tell farmers: you wouldn’t cut corners on a piece of field equipment that you rely on every day, so don’t cut corners on your fuel storage,” says Bliss. “Your tank is an investment, just like everything else on your farm. A poorly chosen or maintained tank can cause fuel loss, impact equipment performance, and create serious safety risks.”

Best practices include:

• Buying quality tanks with proper venting and double walls
• Keeping tanks shaded and painted light colors to reduce evaporation
• Using pressure-relief caps and keeping tanks at least 90% full in winter to avoid condensation

Equipment Maintenance & Upgrades

Routine servicing, proper tire inflation, and investing in newer, more fuel-efficient machinery can significantly cut fuel use. And don’t forget about lubricants: using the right ones helps reduce internal friction and engine wear.

Precision Agriculture

Precision agriculture is a lot like the technology we’re seeing in today’s cars and trucks, it’s becoming smarter and more automated. For farmers, this tech is helping them seed and harvest more efficiently by essentially allowing the equipment to guide itself. GPS guidance systems and onboard automation reduce overlap in the field, so equipment isn’t covering the same ground twice, which cuts down on unnecessary fuel use.

“Some of these systems can even detect things like large rocks in the field and alert the operator before damage occurs,” Bliss says. “That kind of early warning not only protects the equipment but also saves time and fuel that would be wasted dealing with breakdowns.”

Montana farmers are definitely starting to adopt these technologies. They work long hours, and precision agro helps reduce fatigue by allowing machines to handle more of the heavy lifting.

“It’s like having an extra set of eyes and hands in the cab. All of that adds up to more efficient operations, lower fuel consumption, and better decision-making in the field,” says Bliss. 

Use of Fuel Additives

“Additives help year-round,” says Bliss. “In Montana, we deal with extreme conditions. Whether it’s winter planting or livestock operations in January, farming equipment and semi-trucks are often running in very cold temperatures. In those cases, winter-specific additives are essential to prevent fuel from gelling and ensure engines keep running reliably.” 

Beyond cold-weather protection, additives also help maintain the health of the fuel system year-round. Most on-farm fuel tanks aren’t perfectly clean, algae growth, condensation, and even water contamination are common issues. Additives can address these problems by keeping fuel systems clean, minimizing filter clogging, and protecting against corrosion.

How We Help Montana Farmers Save on Fuel

At Farstad Oil, we understand that every farm runs differently. That’s why we offer high-quality fuel solutions tailored specifically to the needs of Montana’s agricultural sector.

• Premium fuel and additive programs: Our high-efficiency fuels and proven additive blends are formulated to improve performance, reduce wear, and protect your equipment, so you get more out of every gallon.
• On-site delivery and storage: We bring the fuel to you, with bulk delivery and custom storage solutions that keep your operation running smoothly and reduce downtime.
• Local, expert support: From seasonal planning to optimizing fuel usage, our team offers practical, hands-on advice to help you make smarter fuel decisions all year long.

“Ultimately, it’s about trust and timing. We’re not just salespeople, we’re partners,” says Bliss. “If a farmer is open to trying something new, we’ll walk them through the benefits, help them monitor performance, and make sure they’re getting the most value out of every gallon. But it all starts with understanding where they’re coming from and how willing they are to consider change.”

In The End, It’s About Making Every Drop Count

Fuel is a major expense, but with the right strategies, it can also be a source of savings. Montana farmers who embrace premium products, better storage, and smart technologies can cut costs, boost equipment longevity, and gain peace of mind.

“Be open to new ideas,” Bliss advises. “Try new fuels or additives. If it doesn’t work, go back. But if you never try, you might miss out on something that really improves your operation.”

Ready to explore smarter fuel strategies? Contact Farstad Oil for expert guidance, premium products, and fuel solutions that help Montana farms thrive.