High Diesel Prices Put Strain on Farmers and Ranchers
A ban on U.S. imports of petroleum from Russia, lower domestic production capacity, and seasonal demand are all contributing to higher costs. Russia provided 20% of the petroleum imported into the U.S. in 2021, but that was halted after Russia’s invasion of Ukraine. Beyond the impact of Russia, since 2019, domestic diesel production capacity has dropped by 180,000 barrels per day. Several plants closed during the coronavirus pandemic and are not yet back online.
AFBF President Zippy Duvall sent a letter to President Biden today, calling on the administration to bring more domestic supply online, reducing costs to all Americans.
“Our nation’s food supply is driven by diesel,” President Duvall said in the letter. “Every input that arrives on our farms and ranches is transported by a diesel engine, whether that is by boat or barge, rail or truck. Our crops are planted by diesel engines and harvested by diesel engines. High diesel prices are severely impacting our farmers and ranchers, causing increased costs to consumers, and adding to food insecurity.”
National diesel prices are expected to average $4.86 per gallon through the end of the year, according to government projections, and $4.29 per gallon in 2023.