Fuel and fertilizer price spikes leave Texas farmers under pressure |
Fuel and fertilizer price spikes leave Texas farmers under pressure
(NewsNation) — The war in the Middle East isn’t just impacting global oil markets; it’s squeezing two industries stateside that keep food and supplies moving across the country — truckers and farmers.
Both sectors are widely considered the backbone of America, with industry leaders now claiming they are getting the short end of the stick. The biggest issue right now is diesel.
The price for the fuel that powers most of America’s farm equipment and 18-wheelers has skyrocketed since the conflict began in Iran. In some areas, it has jumped more than 20%, and in states like Texas, where everything is so spread out, the fuel cost adds up quickly.
“I would say 80 cents to a dollar spike in just a short time. At least paid 80 cents more than what I would normally pay or expect to pay,” John Esparza, President of the Texas Trucking Association, said. “You’re talking, you know, 150 gallons. So, you’re… you need plus. So, these are substantive costs. And when it comes to trucking, you know, labor and fuel are going to be the two highest prices that you pay.”
While the trucking sector struggles, agriculture experts say farmers are staring down what some analysts call a fertilizer cliff. A large percentage of ingredients used to make fertilizer moves through the Middle East shipping lanes. With that region under fire, fertilizer prices are spiking as farmers look to plant for the spring.
“The price of fuel and fertilizer increasing with things going on in the other parts of the world. The price of rice not moving just makes it even harder to offset those same challenges,” Mark Pousson, a Louisiana rice farmer, said.
For states like Texas, this is a double whammy, as many farms rely on diesel-powered equipment and long trucking routes to move those crops. Industry leaders say if these costs continue to climb, consumers can expect to see higher prices at the grocery store soon.
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