"Like the trucking industry, agriculture relies heavily on diesel to run machinery, as diesel-powered engines are more fuel efficient than gasoline-powered ones. Worst of all, the price increase is taking place during the spring planting season. These rising costs are hitting us at the wrong time here in the north country in New York."
"According to the most recent statistics, 86% of farmers in America run small family farms, defined as having a gross income of $350,000 per year or less. And the majority of those farms have high-risk profit margins of 10% or less. So rising diesel costs pose a serious threat to their ability to stay in business."
"Last April, he paid about $2.65 a gallon for off-road diesel. Off-road diesel is for vehicles used off public roads and is therefore exempt from federal and state excise taxes. Depending on the state, it can be anywhere $0.20 to $0.80 cheaper a gallon than on-road diesel. This year, it's pushing $5 a gallon."
American farmers endure mounting economic challenges from multiple sources. Tariffs cost farmers an estimated $34.6 billion as trade partners ceased purchases. The Iran conflict depleted fertilizer supplies and drove diesel prices to record levels, coinciding with spring planting season. Agriculture depends heavily on diesel for machinery operation due to superior fuel efficiency compared to gasoline. Off-road diesel prices nearly doubled from approximately $2.65 to $5 per gallon. Eighty-six percent of American farms are small family operations with gross incomes under $350,000 annually, operating on profit margins of 10% or less. These rising diesel costs pose existential threats to farm viability, as farmers must purchase fuel regardless of price to maintain operations.
Read at www.theguardian.com
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