Republican Senator Chuck Grassley has urged President Donald Trump to implement a ban on diesel exports. This, he argues, will help reduce domestic fuel costs, which he claims are severely impacting farmers’ income.
On Saturday, the senator from Iowa suggested that the president should “put an embargo on diesel exports like presidents in the 70s put embargoes on ag products because food prices were inflated.” This refers to previous measures like the soybean export embargo enacted by Richard Nixon’s administration.
Supply constraints due to the Iran war and global pressures have elevated diesel prices nationwide. The average price exceeded $6 per gallon recently, reaching $6.51 on Sunday. This is a sharp increase from $3.70 just a year ago. Specifically in Iowa, diesel prices hit a record $6.29 per gallon, up from $5.35 last month.
Grassley’s call comes as these rising costs have complicated the situation for farmers and presented political challenges for the GOP close to the midterm elections. Both Grassley’s office and the White House have been contacted for comments.
Farmers Struggle Due to High Prices
According to the Watson School of International and Public Affairs at Brown University, U.S. households have spent an additional $50 billion on diesel since the start of the Iran war. The price per gallon has risen about 77% to $6.49 as of Sunday.
The agricultural sector, experiencing diesel prices peak since early September, warns of financial fallout and impacts on American food supplies. This is especially significant during the crop-harvesting season when operating tractors and combines becomes essential.
John Boyd, founder of the National Black Farmers Association, emphasized that farmers face difficulties, saying, “With $10 diesel fuel, farmers are losing profit margins and going out of business.” The Department of Agriculture has responded, stating that Trump acknowledges the importance of diesel in agriculture and is exploring solutions.
Mixed Reactions to Export Ban Proposal
The U.S. exported approximately 400 million barrels of diesel last year, based on Energy Information Administration data. Since the onset of the Iran war, global shortages have driven price increases, prompting record diesel exports. May saw nearly 50 million barrels exported, the highest since 2009.
Grassley’s argument for embargoes is based on past usages to combat inflated prices. Support has emerged from some Republicans on Capitol Hill. Senate Majority Leader John Thune expressed willingness to consider an export ban. Similarly, Tennessee Representative Tim Burchett introduced a bill banning diesel exports until January 2027. His press release remarked, “Diesel fuel powers the trucks, farm equipment, and machinery that keep our economy moving.” Hence, higher fuel prices lead to increased costs for groceries, goods, and services.
Conversely, Interior Secretary Doug Burgum doubts an export ban will aid U.S. farmers or households. He stressed the need for solutions that truly reduce diesel and gasoline prices. He warned of potential foreign retaliation that could harm the U.S. if exports are banned. Industry groups like American Fuel & Petrochemical Manufacturers also oppose the ban, suggesting it could decrease production, tighten supplies, and ultimately raise fuel prices.
“Export bans do not create more fuel for Americans,” the group stated. “They reduce U.S. fuel production, put upward pressure on prices, weaken energy security and hand market share to foreign competitors.”