The Iowa Corn Growers Association sent a letter to the state’s congressional delegation yesterday requesting immediate help to reduce diesel fuel prices as farmers begin harvest.
Iowa farmers have watched diesel prices jump $0.40 per gallon over the past week, climbing to nearly $6 per gallon. According to the U.S. Energy Information Administration, national on-highway diesel prices are up nearly 59% compared to last year.
“This time of year should be positive for Iowa farmers, but the concern of affordability looms large as diesel prices go above $6 per gallon,” wrote ICGA President Steve Kuiper, who farms in Knoxville. “This is accelerating the economic and mental stress farmers are feeling.”
Kuiper said the group is asking for help lowering the cost of diesel, which powers every combine, tractor and semi during the harvest season.
To offer swift financial relief, ICGA urged Congress and the federal government to explore legislative amendments to the Internal Revenue Code or direct the IRS to grant administrative waivers during economic hardship. This action would allow on-road trucks to use tax-exempt dyed diesel without penalty through the duration of harvest.
Diesel fuel represents a substantial operating expense for farmers during harvest season, when equipment runs around the clock to gather crops before weather conditions deteriorate.
The price surge comes as farmers already face pressure from rising costs across other inputs including fertilizer, seed and equipment maintenance.
