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AFBF Sends Letter to President Biden About High Diesel Prices

Jim Rogers Diesel

American Farm Bureau Federation (AFBF) President Zippy Duvall sent a letter to President Biden on Friday, calling on the administration to bring more domestic supply online. It would reduce costs to all Americans.

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“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.”

The average price of diesel is $5.32 per gallon. It is more than $1.50 above at the same point last year. While prices are below the $5.81 peak in June, the high cost of fuel is hitting farmers hard as they navigate the fall harvest season.

A ban on U.S. imports of petroleum from Russia, lower domestic production capacity and seasonal demand all contribute 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.

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.

To read the AFBF letter to President Biden, click here.

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Source: American Farm Bureau Federation

American Farm Bureau Federation