Conflicts in Iran and Russia are causing diesel prices to spike globally. That’s especially hurting U.S. farmers as they head into harvest season, the most fuel intensive period of the agricultural year.
More farmers are opting to repair old tractors, combines and other machinery instead of buying new upgrades. A tough farm economy and historically-high equipment prices are at least partly to blame.
Passing on the family farm to the next generation is typically an involved process, both financially and emotionally. A turbulent agricultural economy the past few years has made that transition even more difficult.
Corn and soybean growers have seen several years of low commodity prices and increased costs for supplies like fertilizer and fuel. That has many farmers worried about whether they’ll turn a profit this year and drawn some comparisons to a dark time in American agriculture.
The Trump administration lowered tariffs on farm equipment last month. But with economic pressures on farmers, equipment dealers and manufacturers, the move may not bring much relief.
A bill allowing year-round sales of E15, a fuel blended with up to 15% corn-based ethanol, is being debated in the Senate. While the bill is hailed as a boon for corn growers, there are concerns that it could hurt soybean prices.
Farmers continued to take on more debt through the first quarter of 2025, prolonging a trend from last year. That’s as farm incomes have shrunk over the last couple of years, and some worry President Trump’s tariffs could make economic conditions tougher.
U.S. row crop farmers produce enormous quantities of food, and they depend on selling lots of it overseas. They thrive under free trade policies.