IARN — With diesel prices more than $1.50 per gallon high than this time last year, the American Farm Bureau Federation calls on the Biden administration to bring more domestic supply online, 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 percent of the petroleum imported into the U.S. in 2021, but that was halted after Russia’s invasion of Ukraine. Further, 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, in a letter to President Joe Biden, says, “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.
Story courtesy of the Iowa Agribusiness Radio Network.
Pictured: John Deere 9R 640 four-wheel-drive tractor with 2230FH Field Cultivator (Photo courtesy of John Deere)
