Fuel Price Surge Hits US Farm Profits Amid Iran War
Record diesel prices are straining American grain and soybean growers as the conflict in Iran chokes global fuel supplies through the Strait of Hormuz. US distillate inventories have dropped to their lowest levels since 2003 while farmers face a fourth year of shrinking margins and high input costs.
United States farmers face record-high diesel costs as the conflict with Iran chokes global fuel supplies through the Strait of Hormuz. National average diesel prices surged more than 40% since the war began, compounding a fourth year of shrinking margins. This pressure follows a resurgent drought, high input costs, and the fallout from previous U.S. trade policies that weighed on crop prices.
### Fuel Costs Erode Agricultural Margins Diesel prices in the Midwest reached all-time highs in May, coinciding with critical spring fieldwork. Wisconsin diesel hit $5.873 per gallon, while Indiana and Illinois saw prices climb to $6.167 and $6.14 respectively, according to AAA data. These spikes occurred as global crude oil prices rose approximately 30% since late February.
