Rising diesel prices put pressure on farmers, food supply chain

BOWLING GREEN, Ky. — Rising fuel prices are putting additional pressure on farmers as higher diesel costs affect both agricultural production and the transportation of food.

Since the war with Iran began, fuel prices have surged across the country, with diesel seeing a significant increase.

According to AAA, diesel prices were just over $3 per gallon at this time last year. Today, prices have more than doubled, creating additional expenses for farmers who rely heavily on diesel throughout their operations.

Diesel is used to power tractors, combines and other agricultural equipment, while also fueling trucks used to transport crops and other products after they leave the farm.

As a result, higher diesel prices can affect multiple stages of the farm-to-table supply chain, increasing the cost of growing, harvesting and transporting food.

Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities, said the recent increase in diesel prices has been closely connected to the ongoing conflict with Iran.

“Look at diesel prices starting from March, starting from the beginning of the war with Iran. That’s what caused these prices to go up,” Ajilore said.

Ajilore said a significant decline in fuel prices will likely depend on how the conflict develops.

“The only solution is to find a resolution to the conflict in the Middle East, and that will ease prices,” Ajilore said.

Higher fuel costs can ultimately ripple through the agricultural economy as farmers and transportation companies face increased operating expenses.

News 40 will continue tracking fuel prices and their impact on consumers and industries across south-central Kentucky.