Oil Market Eases Following U.S.-Iran Deal, But Farmers Are Still Struggling with Tight Margins

Chelsea Gazillo with American Farmland Trust joins us to discuss challenges facing California farmers, efforts to support producer profitability, and resources available through the organization’s policy advocacy programs.

SACRAMENTO, CALIF. (RFD NEWS) — Oil prices are also seeing some downward movement since a peace deal was inked between the U.S. and Iran.

The conflict had sent gas prices to record highs since February.

The petroleum analyst at GasBuddy, Patrick De Haan, has been tracking fuel reserves and says they are now at the lowest level since 1983.

“That should be concerning because at the end of these releases, by later this year, potentially late summer, the inventory drawdowns are going to be over, and the U.S. SPR will be far less filled. And that is likely going to be somewhat of a concern moving forward because it will put the U.S. in a more vulnerable position if there is another disruption or development like the Strait of Hormuz situation,” De Haan said.

Looking now at fuel prices, diesel this morning is holding at $5.18 per gallon on average. AAA shows gasoline is at $4.04 per gallon.

Last year at this time, a gallon of diesel cost $3.52.

Farmers across California continue to face a variety of challenges, including unpredictable weather patterns and rising production costs that are creating additional pressure on farm profitability.

Chelsea Gazillo, senior California policy manager with American Farmland Trust, joined us on Wednesday’s Market Day Report to discuss how those challenges are affecting producers and the resources available to help support agricultural operations.

In her interview with RFD News, Gazillo discussed how weather uncertainty and rising costs are affecting farmers across California, creating new challenges in managing risk and maintaining profitability.

She also outlined how American Farmland Trust is working to alleviate those pressures through its policy advocacy and programs that support farmers and ranchers.

Gazillo highlighted opportunities for producers and interested stakeholders to learn more about the organization’s policy initiatives and advocacy programs.

LEARN MORE: www.farmland.org

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

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