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High energy costs from Iran war heighten pressure on struggling Louisiana farmers: "It's a game of survival"
CBS News • • general
Key Points:
- Agriculture pilot Reed Keahey in northeast Louisiana faces soaring Jet-A fuel prices, which rose from $2.46 per gallon in February to a peak of $4.11 in May due to the Iran war, significantly increasing his operational costs.
- Keahey purchases large quantities of fuel, spending over $30,000 on a single 7,500-gallon refill when prices peaked, and although prices have slightly dropped to $3.18, they are rising again, putting financial pressure on his business.
- Farmers David and Theresa Guererro are struggling with sharply increased costs for urea fertilizer, essential for their corn crops, as nearly half of global urea exports come from the Persian Gulf, where shipping disruptions have spiked prices and drained their fertilizer budget by $120,000 to $130,000.
- The American Farm Bureau Federation reports a 46% increase in U.S. farm bankruptcies from 2023 to 2024, highlighting the broader financial strain on the agricultural sector amid rising fuel and fertilizer costs.
- Despite the financial challenges, Keahey is absorbing the extra costs rather than passing them on to farmers like Guererro, emphasizing the interdependence within the agricultural community and the critical need for survival.
