U.S. farmers are confronting unprecedented fuel costs as the fall harvest begins. Diesel, the essential fuel for tractors, combines and grain trucks, has climbed to almost $6.50 per gallon nationwide, roughly double last year’s price. The surge is prompting a chorus of state leaders and congressional Republicans to call on President Trump to act.
State officials ask for a temporary export ban
Louisiana Governor Jeff Landry used his X account on Thursday to urge President Trump to impose a 90‑day ban on U.S. diesel exports. Landry argues that restricting exports would increase domestic supply and bring prices down for the state’s agricultural sector.
Senate Majority Leader John Thune (R‑South Dakota) echoed the sentiment on Tuesday, saying he is “open to exploring” federal actions that could relieve price pressure. Iowa’s senior Republican, Sen. Chuck Grassley, went further on his weekly radio show, calling for a full embargo on diesel exports. He likened the situation to the 1970s bans on soybean and wheat exports, warning that high fuel costs could eventually raise food prices.
Why diesel is a critical issue for farmers
According to the Independent Grocers Alliance, fuel and transportation make up 15‑30% of the total cost of food in U.S. grocery stores. With diesel at $6.10‑$6.50 per gallon, farmers are paying roughly twice what they did a year ago to move crops from fields to processors and markets. The ripple effect reaches consumers at the checkout line, even though gasoline prices for passenger cars remain comparatively lower at $4.46 per gallon.
Experts point to supply constraints, not domestic policy
Eric Smith, associate director of the Tulane Energy Institute, said the diesel shortage stems largely from external factors. He noted that Ukrainian drone attacks have knocked out about 30% of Russian refining capacity, forcing U.S. Gulf Coast refineries to operate at an unprecedented 98% of capacity—about 8% above normal.
Smith highlighted two Louisiana refineries—the Shell Convent plant and the Phillips 66 Alliance in Belle Chasse—that were idled during the pandemic but could collectively process 495,000 barrels of crude per day if restarted. “If people thought the shortage was going to be around for some period of time, those refineries could be restarted,” he said, estimating a six‑month timeline for a full restart.
Historical perspective on export restrictions
Smith reminded listeners that government‑imposed export bans have a mixed record. In the late 1970s, Congress enacted a blanket ban on all hydrocarbon exports, which he described as “paralyzing the domestic market.” By contrast, the Reagan administration in the late 1980s lifted restrictions on refined‑product exports produced from imported crude, allowing refineries to operate more efficiently and keep prices in check.
Energy fellow Ed Hirs of the University of Houston warned that reviving 1970s‑style market controls would betray free‑market principles. He questioned why officials like Thune, Landry and President Trump appear to side with progressive policymakers, noting that such restrictions could harm the very employers in Louisiana that drive the state’s economy.
What’s next for the Trump administration?
The administration has not yet announced a formal response, but the mounting pressure from governors, senators and agricultural stakeholders suggests that a policy review is imminent. President Trump’s team has historically favored market‑based solutions that protect American producers while avoiding heavy‑handed regulation.
For now, farmers and freight operators must absorb the higher costs, and consumers may see the impact reflected in grocery prices in the weeks ahead.
Original reporting: KTBS 3 (Shreveport) — read the source article.
