Across the globe, geopolitical events are hitting U.S. farmers where it hurts: fuel.
Tension between Israel and Iran has the oil markets spooked. Energy analysts were predicting a slow summer for fuel prices, but those estimates are gone.
The national average for a gallon of diesel has gone up $0.04 over the last week, holding around $3.48, but increases are not likely to stop there. GasBuddy’s Patrick DeHaan says diesel could climb $0.15-$0.25 per gallon in the coming days.
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Ethanol demand held together last week, but lower production and thinner stocks put more focus on export strength. Production capacity is also strengthening over time and benefiting soybean farmers.
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.
A Prop 12 fix made the final Farm Bill text, but amendments for E15 and pesticide labeling will be voted on separately.
Higher biofuel mandates boost long-term crop demand, but a tighter D4 market may pressure biofuel feedstocks and pose new soybean oil demand risks.
According to a tweet from Rep. Anna Paulina Luna, the full House vote on the Farm Bill will be held until lawmakers return from recess.
The House is moving forward with debate on the Farm Bill after a lengthy session in the House Rules Committee cleared the legislation for floor consideration.
