John Boyd Jr., a fourth-generation farmer from southwest Virginia, recently faced a startling expense while fueling his tractor. The cost was nearly $1,000. Boyd specializes in growing soybeans, corn, and wheat, and also raises beef cattle. Currently, he is engaged in harvesting corn, a process requiring his machines to operate continuously.
Diesel prices have surged to around $7 a gallon, nearly double from a year ago, according to Boyd. The national average for diesel has escalated to more than $6.51 a gallon, reflecting economic effects tied to the conflict involving Iran. The previous peak was $5.85 a gallon, recorded in early September.
Boyd, who is also the founder and president of the National Black Farmers Association, described the situation as a national farm crisis. He explained the financial strain by stating that he has to find funds outside his budget to cover these heightened expenses. Without diesel storage on his farm, Boyd purchases fuel in bulk and transports it for use in his machinery.
This financial pressure necessitates reallocating resources from other farm-related costs to address the soaring fuel prices. Boyd revealed that with corn selling at around $5 per bushel, the additional fuel costs present a significant burden.
Boyd highlighted that these rising fuel costs exacerbate existing financial challenges for many farmers. He noted that over 400 Black farmers are at risk of losing their farms without financial support. Additionally, Boyd pointed out some farmers’ frustrations with the current administration, attributing policy disappointments to their precarious situations.
The escalation in diesel prices is part of a broader global fuel shortage, heightened by geopolitical tensions following the U.S. and Israel’s actions against Iran in late February. Disruptions to Middle Eastern oil shipments, particularly through the Strait of Hormuz, have driven crude oil prices up and constricted diesel supply in regions like the United States, Europe, and Asia.