Absolutely. The extra costs essentially are absorbed by farmers.
Farmers obviously always try to pass on costs wherever they can. If you absorb every additional cost, obviously every additional cost would become a red figure in your books. Let's say that 75% are able to be passed on. You'll always have the competition factor from external factors as well as from imports, and so on. It's very rare that 100% of costs are passed on, so you will experience a net loss as a result of that diesel price increase.