Impact of Rising Diesel Costs on American Farmers

John Boyd Jr., a fourth-generation farmer in southwest Virginia, faces significant challenges due to rising diesel fuel costs. As the president of the National Black Farmers Association, he grows soybeans, corn, and wheat while raising beef cattle. This period, primarily focused on corn harvesting, involves constant use of combines and heavy machinery.

Boyd recently paid around $1,000 to fill his tractor. Today, diesel for him costs nearly $7 per gallon, double the previous year. AAA data shows the national average for diesel has surpassed $6.51 per gallon. This rise is largely attributed to the conflict with Iran. The earlier record of about $5.85 per gallon was surpassed in early September.

“This is a national farm crisis,” Boyd explained during an NPR interview. He expressed difficulty in managing unplanned costs. Without a diesel storage system on his farm, Boyd frequently transports fuel back and forth, incurring additional expenses.

Constantly reallocating funds from other farm needs, Boyd uses his father’s saying, “robbing Peter to pay Paul,” to describe his situation. With corn prices at approximately $5 per bushel, the squeeze is tight. More than 400 Black farmers are at potential risk of losing their farms without financial aid.

Boyd, who supported the current administration, noted that many farmers feel abandoned as they face potential farm losses. The surge in diesel prices is part of a wider global fuel shortage. This escalation followed US and Israel’s military action against Iran on February 28, disrupting oil supplies. The subsequent stress on crude oil availability, especially through the Strait of Hormuz, has driven up prices, impacting the United States, Europe, and Asia.

For further insights, listen to the NPR interview using the player above.