Record diesel prices — now averaging about $6.53 per gallon nationally, up from roughly $3.69 a year ago — are placing significant strain on U.S. farmers. Iowa producer Dan Pedersen says his 10,000-acre operation now spends an estimated $75,000 more per month on fuel after diesel spiked. Policy ideas such as an export ban were floated but criticized by experts, while state officials and farm leaders warn of a growing industrywide crisis that threatens many operations.
Iowa Farmer Sounds Alarm As Record Diesel Prices Strain U.S. Agriculture
Founder and president of the National Black Farmers Association John Boyd Jr., seen here in 2021, said there is a "national farm crisis." via Associated Press
An Iowa farmer is warning that record-high diesel prices — which some producers and officials link to tensions between the U.S. and Iran — are imposing a severe financial burden across American agriculture.
Dan Pedersen, who runs a 10,000-acre farm and a 12,000-head feedlot in Underwood, Iowa, told KETV in Omaha that his operation uses roughly 800 gallons of diesel a day and that fuel costs have climbed dramatically. “I just wish they would get that deal settled in the Middle East,” Pedersen said, noting his business is more than 6,700 miles from the conflict but still feeling the effects.
According to AAA, diesel reached a national average of $6.53 per gallon on Tuesday, up from about $3.69 a year earlier. Pedersen estimates the higher prices have added roughly $75,000 a month to his fuel bills; he also cited longer hauls and higher trucking costs, including runs that are about $400 more expensive than before.
“It’s just crazy, you know?” Pedersen told reporter Aaron Hegarty. “The crops are ready, the cows need to be fed every single day — this operation doesn’t stop.”
On the policy front, President Trump suggested a possible ban on diesel exports to reduce domestic prices — a proposal experts warned could disrupt markets and have unintended consequences. Energy Secretary Chris Wright has since dismissed talk of a broad or “blanket” export ban.
State and industry leaders say the squeeze is widespread. Louisiana Governor Jeff Landry declared a state of emergency aimed at providing immediate relief to farmers. John Boyd Jr., founder and president of the National Black Farmers Association, told NPR that rising fuel costs are contributing to what he calls a “national farm crisis,” and warned that more than 400 Black farmers face the risk of losing their farms.
Producers in other regions report similar pressure. Jack Klapper, a farmer in western New York, told WHAM-TV that harvest and daily livestock care cannot be paused: “The crops are ready, they need to be harvested, the cows need to be fed every single day,” he said, adding that higher diesel adds a major operational strain.
What Farmers Say This Means
Farmers describe immediate cost increases, narrower margins and difficult budgeting choices. Industry groups and some state officials are calling for targeted assistance and policy measures that avoid market disruption while addressing supply and distribution problems.
Reporting Notes: Fuel price figures cited from AAA; farmer comments reported by local outlets including KETV and WHAM-TV; industry context reported by NPR and national farm organizations.
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