Kentucky Farmers Face Record Diesel Costs Amid Global Supply Disruptions
Kentucky farmer Brennan Gilkison is facing unprecedented diesel costs this fall, with prices nearing $6 per gallon, nearly double what they were a year ago. Gilkison, who operates a farm in Clark and Fayette counties, spends between $600 and $700 daily on diesel alone for a single combine, a significant financial strain on his operations.
The surge in diesel prices is linked to global conflicts, particularly the wars in Ukraine and Iran. The U.S. conflict with Iran has disrupted crude oil shipments through the Strait of Hormuz, while the war in Ukraine has damaged Russian refining facilities. These disruptions have led to a sharp decline in diesel supply, pushing prices higher.
Gilkison expressed skepticism about alternative fuel options, noting that older equipment running on gas is less efficient and that battery-powered alternatives are not yet viable. He also highlighted the broader financial challenges facing farmers, including rising costs for seeds, fertilizer, labor, and land.
In response to the crisis, Kentucky Agriculture Commissioner Jonathon Shell requested that Governor Andy Beshear allow farmers to use untaxed diesel for farm equipment during the fall harvest. However, Gilkison remains uncertain about the impact of this measure, suggesting that adjusting biofuel standards to incorporate more corn and soybeans into ethanol production could be a more effective solution.