American farmers are battling high diesel prices ahead of the Spring planting season
American farmers are feeling the pain of the Iran conflict from thousands of miles away. Will Hutchinson will soon begin his Spring planting season, one of the most energy dependent times of the year for farmers.
MURFREESBORO, Tenn. – Farmers work on a well-known profit margin and the high cost of heating their equipment is another budget category to think about during this growing season.
About 20% of the world’s daily oil production passes through the Strait of Hormuz off the coast of Iran. In retaliation for US strikes in the Middle East, the Iranian Regime has threatened to attack any ships crossing the river.
The deadlock means higher fuel prices around the world, including in the US
Farmers are preparing for the spring planting season, one of their most energy-dependent seasons. Will Hutchinson, a farmer from Middle Tennessee, said the timing of the Iran conflict could not be worse.
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About 20 percent of the world’s oil flows through the Strait of Hormuz off the coast of Iran. The Iranian Regime threatens to attack any ships that cross the ship without permission. (FOX / Fox News)
“With the recent events here in the planting season, it has taken us by surprise,” Hutchinson said.
Hutchinson burns 500 gallons of diesel every day during the growing season. On an average day during the autumn harvest, he uses about 1,500 liters of diesel and 5,000 liters of liquefied petroleum gas (LP).
Many farmers are trying to survive on what they have in the end. Hutchinson carries 20,000 liters of diesel in two steel tanks on his property. You save 6,000 pounds of LP fuel just by walking a few steps.
“If we don’t get a solution here in the next few months, we’re going to burn that buffer that we have here,” Hutchinson said.
Will Hutchinson keeps 20,000 gallons of diesel and 6,000 gallons of liquid fuel on his farm in Murfreesboro, Tennessee. (FOX / Fox News)
On Wednesday, the national average for a gallon of diesel was $4.83. The price jumped over a dollar in less than a month.
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Nick Ewen, Executive Director of Planning for Guy’s Points, said that fuel prices could continue to rise for several weeks, even after the end of the Iran conflict.
“The big question is how far they can go, and we don’t know. It depends on how long the conflict lasts and how long the bottleneck of the Strait of Hormuz will go,” said Ewen. “The bottom line is there’s going to be pain for anyone trying to fill up their car or truck at the gas pump, probably for a few more weeks.”
Many farmers have no choice but to continue using diesel as the planting season approaches. Farmers are hoping for an end to fuel price hikes brought on by the Iran conflict. (FOX / Fox News)
Hutchinson said the budget for high fuel prices is overwhelming tractors operating in the industry. You pay for the fuel used at all levels of the supply chain.
“We’re starting to squeeze in fuel, you know, field operations, and then it’s up to us to get our product to market. Every step of that process has to be diesel,” Hutchinson said. “It’s looking at it from two different angles from the cost of production and the cost of transportation.”
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By 2023, crude oil will make up more than 75% of US petroleum purchases, according to the Energy Information Administration. The US exported more than 4 million barrels of its crude oil that year.
“If anything, this highlights the need for, you know, as much energy independence as possible,” Hutchinson said. “If we can produce more energy in this country, that helps to avoid being hit in times like this.”
