Diesel prices squeeze US farmers ‘barely getting by’ amid tariffs and drought
Summary
American farmers are facing high diesel fuel prices that are making it hard for them to run their farms, especially during spring planting. These fuel costs, combined with past trade problems and droughts, are threatening the financial survival of many small and family farms.Key Facts
- Last year, American farmers lost about $34.6 billion due to tariffs that reduced exports.
- The war with Iran has caused fertilizer shortages and increased diesel prices to record levels.
- Diesel fuel is essential for farming machinery because it is more efficient than gasoline.
- Diesel prices for off-road use rose from $2.65 a gallon last April to nearly $5 a gallon this year.
- About 86% of U.S. farmers run small family farms with gross income of $350,000 or less.
- Most small farms have profit margins below 10%, making them vulnerable to cost rises.
- Farmers like Blake Gendebien and Sam Frost say rising diesel costs hurt their ability to farm.
- Black-operated farms face greater challenges, with many earning less than $5,000 yearly and their numbers declining faster than average farms.
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