Farmers Hit Hard by Record-Diesel Prices Amid Calls for Export Ban

U.S. farmers are facing record-high diesel prices as they prepare for the fall harvest, prompting calls from Louisiana Governor Jeff Landry and Senator Chuck Grassley to impose a temporary ban on diesel exports.

The national average price of diesel has soared to nearly $6.50 per gallon, with Iowa averaging over $6.10 per gallon, according to the source. This is more than twice what farmers were paying last year.

Eric Smith, Associate Director at the Tulane Energy Institute, attributed the shortage to Ukrainian drone strikes that have disabled about 30% of Russian refining capacity, rather than domestic policy.

Smith suggested restarting two refineries in Louisiana that were shut down during the pandemic, which could add 495,000 barrels per day of crude oil processing capacity.