Farmers Brace for Rising Fuel Spikes and Senators Call for Biofuels
**California farmers, and farmers around the country, are bracing for further spikes in fuel and other energy costs, as Russia’s invasion of Ukraine has pushed crude oil prices higher, and President Biden has banned U.S. imports of Russian oil.
These price increases come as farmers rev up tractors for spring planting.
Some farmers estimate that diesel and gasoline account for 10% to 15% of production costs, with transportation also consuming an increasing share of fuel budgets.
**The March WASDE U.S. wheat supply and demand outlook calls for lower supplies, unchanged domestic use, reduced exports, and higher ending stocks.
Wheat exports dropped 10 million bushels, while imports dropped five million bushels from last month, all in Hard Red Winter Wheat.
The season-average farm price rose 20 cents a bushel to $7.50.
The corn supply and demand outlook is for INCREASED food, seed, and industrial use, larger exports, and smaller stocks.
**As gas prices at all-time highs, Iowa senators Chuck Grassley and Joni Ernst are asking the president to “unleash biofuels” NOW.
They want Biden’s support on their bipartisan plan to replace Russian oil with clean-burning, American-made renewable fuels that are available right now.
The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing.