Iowa Corn Growers Seek Federal Help as Diesel Prices Soar

The Iowa Corn Growers Association is calling on the federal government to intervene in the diesel market by releasing oil from the Strategic Oil Reserve. The organization's president, Steve Kuiper, believes this step is necessary due to the significant increase in diesel prices, which have risen by nearly 40 cents per gallon over the past week.

Diesel prices are currently averaging around $6.28 a gallon in Iowa, down from $6.31 just yesterday, according to AAA data. This surge has put pressure on farmers who rely heavily on diesel for their harvest operations. 'Farm fuel is almost exactly twice the price of what we contracted fuel for last November,' Kuiper stated.

The high costs are also affecting grain haulers and freight companies, which are passing on the increased expenses to consumers in the form of higher prices. Kuiper estimates that every trucking company is adding a 'fuel surge' to their freight costs, directly impacting customers. To mitigate this, the Corn Growers Association suggests waiving IRS rules so that on-road semis can use tax-exempt dyed diesel without penalty.