Farmers Warned Against Diesel Export Ban Amid Record-High Prices

Agricultural economists are cautioning against banning diesel exports, which could have unintended consequences for farmers. The U.S. currently exports around 25% of its refined diesel fuel, and a ban would likely increase domestic supplies. However, there are concerns that the infrastructure is not in place to move more diesel fuel at a lower price.

Krista Swanson, chief economist at the National Corn Growers Association, said, 'When we start playing games like that, we start seeing retaliation on our ag products.' Scott Meyer, former USDA chief economist, added that decisions such as export bans can create other consequences that linger.

The debate over diesel exports comes amid record-high diesel prices, which hit a retail average of $6.52 a gallon on Tuesday. Farmers are also facing higher commodity prices, but these gains are countered by the high cost of production. A joint survey by the National Corn Growers Association and American Soybean Association found that nearly half of farmers are more concerned about their farm financials than a year ago.