California Freight Crisis Hits Farmers and Truckers Hard: A Conversation with Nick Foglio

The Freight Emergency in California

Nick Foglio didn’t mince words: freight in California is at a breaking point. Despite rising fuel costs, equipment expenses, and increasing wages, freight rates are not keeping pace. In fact, current rates are some of the lowest seen in over a decade—so low that many trucking companies are operating at a loss.

“You’d assume with fuel, labor, and equipment costs climbing, freight rates would go up. Not the case,” Foglio explained. “The only ones operating at a loss are the trucking companies themselves.”

This discrepancy is largely driven by brokers leveraging bargain-basement rates from load boards, forcing ag-based freight—like hay and silage—from Idaho and Utah into direct competition with bulk shipments for companies like Amazon and UPS.

Trucking Companies Under Siege

Foglio laid out a stark cost breakdown for California-based trucking firms: a new truck costs $250,000, a trailer $80,000, insurance premiums are exorbitant, and drivers must be paid well above minimum wage. Add California’s Air Resource Board regulations, and the price tag balloons.

“That $225,000 truck might cost you another $25,000 in repairs—within the first 100,000 miles—because of sensors, DEF, and environmental regulations,” said Foglio.

The result? A business model that’s unsustainable. Insurance premiums alone are pushing companies to shut down, relocate, or register equipment out of state.

A Grim Outlook for California Ag Logistics

The consequences of California’s freight crisis ripple throughout the state’s agricultural system. Freight costs once absorbed into product pricing are now either undercutting the grower’s bottom line or being passed along to consumers at the store.

“There’s no dollar left in trucking,” Foglio stated. “Any money to be made is eaten by fuel and insurance—absorbed by the state.”

In addition to freight, farmers face other burdens—chief among them, the ongoing water crisis and increased land regulation. “California is at a breaking point,” Foglio warned. “Water. Freight. Land. It’s all connected.”

Permanent Crops Show Some Promise

Despite the grim logistics picture, Folio highlighted a silver lining: the rebound in almond and pistachio markets. After losing market share due to tariffs, U.S. almonds are regaining ground internationally as buyers return, disappointed by the lower quality of nuts from other countries.

“We’ve got those buyers back,” Foglio confirmed. “The almond market reflects that.”

However, other segments, like the raisin and wine grape markets, remain stagnant or soft. Much of this hinges on water access, which varies dramatically by irrigation district.

What Needs to Change

According to Folio, stabilizing California’s freight and agriculture sectors requires serious reform:

• Lower fuel prices
• Insurance reform
• Road and infrastructure improvements
• Regulatory relief from environmental burdens

If these changes aren’t made, the state risks losing its edge in food production and logistics—sectors vital not just to California, but to the nation.

“Trucks feed the world,” Foglio concluded. “Farming is already tough. Add fuel and freight—where does it end?”

A Sobering Yet Honest Assessment

Nick Foglio, who wears many hats as a hay trader, trucking company owner, and farmer, delivered a sobering message. With no viable path to profitability in any of his ventures under current conditions, his outlook underscores the urgency for reform.

“So far, I’m 0 for 3,” Foglio joked, referring to his own businesses. “But I always love giving my two cents. I hope it’s appreciated.”

As California faces down these overlapping crises, voices like Folio’s serve as a crucial reality check—and a call to action.

Nick Papagni, “the Ag Meter,” reporting for AgNet West.