TOP 10 ways to reduce fuel costs for farmers in 2025
With rising fuel prices and excise duties set to increase in 2025, Ukrainian farmers are faced with the need to optimize costs. Fuel accounts for up to 10% of production costs per hectare, making savings in this area critical to increasing profitability. In this article, we will look at the TOP-10 ways to reduce fuel costs that will help farms maintain financial sustainability and increase production efficiency.
1. Introduction of energy-efficient tillage technologies
One of the key ways for farmers to reduce fuel costs is to switch to energy-efficient technologies. For example, minimal or zero tillage (no-till) allows for fewer passes of machinery over the field, which reduces diesel consumption. According to companies such as Agrain and TAS Agro, switching to such technologies has already resulted in a 15–20% reduction in fuel consumption per hectare.
- Minimal tillage : reducing the number of operations, such as plowing, by 30–50%.
- Universal operations : combining several processes (e.g. sowing and fertilizing) in one pass.
- Precision farming : using GPS navigation to optimize equipment routes.
2. Logistics and route optimization
Logistics plays a role in the structure of fuel costs. Optimizing the routes for transporting agricultural products and machinery can significantly reduce diesel costs. For example, using route planning software can reduce mileage by 10–15%.
Recommendations for optimization:
- Use fleet management systems to plan routes.
- Minimize empty flights by combining transportation tasks.
- Buy fuel in bulk and store it in your own warehouses to minimize trips to gas stations.
3. Use of biofuels and alternative energy sources
In 2025, the use of biofuels such as biodiesel will become increasingly relevant. This not only reduces dependence on fossil fuels, but also allows for cost savings due to lower production costs. For example, farmers can produce biodiesel from crop waste such as rapeseed oil.
| Fuel type | Average price, UAH/l (2025) | Savings compared to diesel, % |
|---|---|---|
| Diesel fuel | 63–69 | - |
| Biodiesel | 50–55 | 15-20% |
| Liquefied gas | 56–58 | 10-12% |
It is important to consider that switching to biofuels requires modernization of equipment, but in the long term it pays off through savings.
4. Wholesale fuel purchases and tenders
Companies such as "AGROTRADE" are already successfully using the practice of purchasing fuel in bulk through tenders. This allows you to fix the price for the season and avoid the impact of market fluctuations. According to AgroPortal, wholesale purchases can reduce the cost of fuel by 5–7 UAH/l.
Tip: Plan fuel purchases in advance, enter into long-term contracts with suppliers to minimize the impact of excise tax increases in 2025.
5. Modernization of agricultural machinery
Using modern, fuel-efficient equipment is another way for farmers to save fuel . For example, tractors with Euro-5 engines consume 10–15% less fuel than older models.
- Replace old tractors with energy-efficient models.
- Perform regular maintenance to maintain optimal engine performance.
- Use automatic engine shutdown systems when idle.
6. Application of precision agriculture
Precision farming, which includes the use of GPS, drones, and sensors, helps optimize fuel consumption by performing operations precisely. For example, automatic control of machinery allows you to avoid unnecessary passes through the field, which reduces fuel consumption by 5–10%.
Example: drones for field monitoring allow you to accurately identify areas that require treatment, minimizing unnecessary fuel consumption.
7. Reducing the number of tillage operations
Reducing the number of tillage operations, such as cultivation or harrowing, can significantly reduce fuel consumption. For example, switching to strip-till technology can reduce the number of operations by 20-30%.
Advantages:
- Reducing fuel costs.
- Preservation of soil structure.
- Reducing soil erosion.
8. Use of hybrid and electric vehicles
Although electric tractors are not yet widespread in Ukraine, hybrid models are already starting to appear on the market. They allow you to reduce fuel consumption by 20–30% due to the combination of diesel and electric engines.
Forecast for 2025: Taking into account the increase in diesel fuel prices (up to 63–69 UAH/l), investments in hybrid vehicles may become economically justified.
9. Staff training and work optimization
Proper operation of equipment by drivers and operators can significantly affect fuel consumption. Training personnel in economical driving and proper equipment adjustment can reduce fuel consumption by 5–10%.
Recommendations:
- Conduct regular training for equipment operators.
- Monitor the speed and operating mode of the engines.
- Use telematics systems to monitor equipment performance.
10. State and international support
In 2025, farmers can take advantage of state and international support programs, such as compensation for the purchase of agricultural machinery or grants for the implementation of energy-efficient technologies. For example, the program "Compensation for the purchase of agricultural machinery for farmers of the Lviv region" allows covering up to 50% of the costs of purchasing energy-efficient equipment.
To get support:
- Register in the State Agrarian Register.
- Apply through the Diya portal.
- Keep an eye out for grant programs from international donors such as UNDP.
Fuel price forecast for 2025
According to forecasts, in 2025, diesel fuel prices in Ukraine may increase to 63–69 UAH/l due to increased excise duties and fluctuations in world oil prices. However, a temporary decrease in prices is expected in May 2025 due to a decrease in world oil prices and the strengthening of the euro against the hryvnia. This creates a window of opportunity for farmers to buy fuel at a lower price.
Conclusion
Reducing fuel costs in 2025 requires a comprehensive approach: from the introduction of energy-efficient technologies to the optimization of logistics and the use of state support. The implementation of the proposed measures will allow farmers not only to reduce costs, but also to increase their competitiveness in the market. Start by analyzing current costs and implementing at least 2–3 of the proposed methods to see tangible results this season.
