John Boyd Jr., a fourth-generation Virginia farmer, faces increasing diesel costs that are impacting his soybean, corn, and wheat operations, as well as his beef cattle farming. Having filled up his tractor recently, Boyd reported a staggering bill of approximately $1,000. His equipment runs almost non-stop during the current corn harvesting season, and he notes that diesel now costs around $7 per gallon—a significant jump from last year’s prices.
The national average for diesel fuel has soared to over $6.51 per gallon, according to AAA data. This increase follows a previous record of about $5.85 a gallon, reached at the beginning of September. The rise in fuel prices is attributed to the geopolitical tensions arising from the conflict with Iran.
Boyd labels the situation a ‘national farm crisis,’ emphasizing the difficulty of managing his finances to accommodate these unforeseen fuel costs. He must buy diesel without the ability to store it on his farm, relying on frequent refills from a truck carrying a few hundred gallons. This necessitates budget adjustments, shifting financial resources originally meant for other farm expenses.
Corn prices hover at around $5 per bushel, insufficient to cover the mounting fuel costs required for harvesting. Boyd highlights the compounding financial stress on farmers, many of whom, including over 400 Black farmers, are at risk of losing their farms. Further, he notes dissatisfaction among farmers who supported the current administration but now struggle with insufficient aid.
The spike in diesel prices reflects a larger global fuel shortage, heightened by disruptions in oil shipments from the Middle East. The strategic Strait of Hormuz, critical for crude transport, has witnessed delays, affecting fuel supplies in the U.S., Europe, and Asia. This issue has been exacerbated by military actions by the U.S. and Israel, following attacks on Iran on February 28.