SHERMAN, N.Y. — Farmers across the country, including in Chautauqua County, are feeling the impacts of global fuel disruptions more and more every day. Unfortunately for them, a solution is nowhere in sight.
As of Monday, diesel prices are now at the highest level ever recorded in the United States. The national average hit a record $6.51 per gallon today. Prices rose 3.9% from July to August alone.
Since the start of the Iran War in February, fuel costs have fluctuated, but recent escalation in the Gulf states, including conflicts in Yemen on Sunday, as government forces launched attacks against Iran-backed Houthi rebels along the Red Sea and Houthis fired into neighboring Saudi Arabia.
Additionally, President Trump says Ukrainian attacks on Russian refineries have disrupted global diesel supplies.
The rising cost of diesel is being felt by consumers more and more each day. However, the farming industry is feeling some of the most direct impacts. Farmers like Chad Schofield, owner of Schofield Farms LLC in Sherman, tell 7 News that 98% of his business runs on diesel fuel.
"Any margins that did exist, especially in the commodity business, have all but vanished," Schofield said. "Most of that ink has turned from black to red over the last several months. And the underlying factors, in addition to general inflation running wild, are fertilizer prices and diesel fuel."
Schofield's farm houses a 10,000-gallon diesel tank. In February, prior to America and Israel striking Iran, it cost the business $23,000 to refill the tank. However, grape harvesting season started last week, and it cost $56,000 to refill.
"Our cost of production, whether it's on one acre of crops or what it costs us to produce 100 pounds of milk. Those input costs have absolutely skyrocketed. Commodity prices have not kept pace with those increases whatsoever."
Schofield continued, "The current administration has offered up certain subsidies earlier this year to try and take the pain out of what they created. Starting a tariff war, which has affected the prices of our exports, and on this facility we rely on a global market and economy."
"To set the price of our product primarily in the form of corn has a huge effect on dairy prices as well. So as far as the future. We don't want government aid. We want better policy," Schofield said.
Earlier in the month, Canada imposed retaliatory tariffs of up to 50%, intended to match U.S. tariffs imposed by President Donald Trump on Aug. 22 on Canadian imports “dollar for dollar.”
The counter-tariffs apply to products including steel, paper, dairy, agricultural equipment and appliances. Among the products facing the full 50% tariff are toilet paper, wood flooring and some dairy products.
Speaking on the rising cost of fuel on Wednesday, Trump said, "You have a little higher. It's a very low price to pay for what we've done. Remember that. It's a little more. Frankly, even if it was a lot more."
"I think in general a lot of the agricultural community has figured out in the last several months that everybody needs to be careful who they vote for," Schofield said.
He also worries if costs continue to rise going into the winter months, he may have difficulty retaining the 85 local employees currently working for him.
Trump is expected to tout the US peace efforts to world leaders at the UN General Assembly this week, as the conflict with Iran looms large in the backdrop.
Trump is expected to deliver remarks Tuesday and hold key meetings with leaders.
