The Iowa Corn Growers Association is asking Iowa’s congressional delegation to lobby the Trump Administration to release oil from the country’s Strategic Oil Reserve to increase the supply of diesel and reduce the price.
Iowa Corn Growers Association President Steve Kuiper said federal intervention is needed because diesel is a key input for every combine, tractor and semi used during harvest. “Farm fuel is almost exactly twice the price of what we contracted fuel for last November,” Kuiper said.
The Corn Growers’ letter cites the nearly 40-cent-per-gallon jump in diesel prices this past week and “continued world conflicts and supply pressure further eliminate any margin in this year’s crop.” Kuiper said the economic and mental stress farmers are feeling is accelerating. “Farmers feel like they’re getting beat up pretty bad,” Kuiper said.
And that includes the cost of hauling grain to elevators. The Iowa Corn Growers’ letter suggests IRS rules should be waived so on-road semis can use tax-exempt dyed diesel without penalty during this year’s harvest season. “Every freight company and trucker is adding a fuel surge to the freight,” Kuiper said, “and that’s a direct cost to the consumer.”
The average price for diesel a year ago in Iowa was $3.50 a gallon. It’s now selling for about $6.28 a gallon, on average, down nearly three cents from yesterday according to AAA.
