Record Diesel Prices Raise Costs Tens of Thousands of Dollars for Some Farmers

People around the country may not immediately recall Dan Pedersen's name, but many may remember his situation. Pedersen operates a 10,000-acre farm and feedlot with 12,000 cattle in Underwood, Iowa.

That isn't the part that made national news.

The fact that record diesel prices could cost him $150,000 this year is.

"It's just crazy, you know?" Pedersen told KETV in Omaha, Nebraska.

His farm's 800 gallon-a-day diesel fuel consumption has never been more expensive. Diesel prices have gone up about $2.75 per gallon since President Donald Trump launched the war with Iran in February.

"I just wish they would get that deal settled over the Middle East," Pedersen told KETV.

A 75% spike in diesel costs got inflated by two main factors: the seven-month war with Iran that choked off some of the world's oil supply that normally travels through the Strait of Hormuz, and the 4.5-year-long Russian invasion of Ukraine, where Ukraine has recently struck Russian oil refineries.

RELATED: This warning came out earlier this summer about what the war with Iran could do to the global economy and inflation.

Could the U.S. Ban Diesel Exports?

Some Republican politicians have suggested a temporary ban on diesel exports. They contend that supply could then build in the United States and lower prices. There are mixed opinions on that, however.

U.S. Rep. Ashley Hinson (R-IA), who is running for her state's open U.S. Senate seat, demonstrated the pressure that some lawmakers are feeling to do something.

Iowa voters have largely favored Republicans over the past decade, temporarily pausing its swing state reputation. But recent polls show Hinson trailing her Democratic challenger, state Rep. Josh Turek.

Hinson had steadfastly defended Trump's actions in Iran. She voted against a Democratic-led war powers resolution seven times that could have forced the President to end the war unless he had congressional authority.

But this past week, she announced that it was time to end the war, the U.S. House needed to end its planned seven-week break through the mid-term elections, and members should return to Washington, D.C., to take a series of actions that could lower fuel costs.

Temporarily stopping diesel exports is one of the steps that Hinson wants Congress to take.

"Iowans are being squeezed and shouldn't have to foot the bill at the pump or the checkout line for the war in Iran," Hinson said. "We need to use every option at our disposal to provide some relief from high prices."

The state's longtime senator, Chuck Grassley, has also pushed to temporarily stop diesel exports.

Is the Trump Administration Considering Diesel Export Restrictions?

The Trump administration is considering some form of diesel export restrictions but faces opposition from a number of large business groups. The U.S. Chamber of Commerce, Business Roundtable, National Association of Manufacturers, American Petroleum Institute, and others warned against a diesel export ban.

The groups wrote the President a joint letter and said, "...we urge you to reject calls to ban or otherwise limit the exports of diesel and other products that have made the U.S. energy industry so strong. Export bans would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers."

RELATED: Two summers ago, this bipartisan effort formed to better support sustainable aviation fuel and the producers who could provide it.