High Fuel Prices Squeeze Farms and Ranches

Jul 05, 2022

Rising fuel prices are putting growing pressure on farmers and ranchers as they grapple with increased costs of growing food and fiber. USDA estimates show that the cost of fuel, lube and electricity is expected to increase 34% in 2022 compared to 2021. American Farm Bureau Federation economists analyze the factors contributing to rising fuel prices in the latest Market Intel.

The war in Ukraine has reduced availability of global crude oil and U.S. domestic production is down while demand is increasing in the United States and abroad. Diesel prices rose to $5.718 per gallon in June, up $2.432 per gallon, or 74%, compared to $3.286 per gallon in June 2021. The current high price of diesel is more than two times the price paid before 2020.

“While some farmers are seeing increases in commodity prices, their gains are being eaten up by higher expenses,” said AFBF President Zippy Duvall. “Many farmers and ranchers are concerned they won’t be able to break even, much less make a profit. It’s not just on-farm costs taking a toll. High diesel and gasoline prices, among other increased costs, all affect the food supply chain, starting at the farm and continuing to the grocery store, which means all families are ultimately paying more to put food on their tables.”

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.