Report Shows Trump’s Reckless Tariffs & Iran War Are Fueling Higher Diesel Costs & Piling Financial Strain on Local Farmers

WASHINGTON, DC -- Local farmers are suffering a double blow from President Trump's chaotic tariffs and high diesel prices caused by Trump's unauthorized war with Iran.

According to AAA, the average price of diesel today in Rhode Island is $5.36, up $1.80 per gallon from the average price of $3.56 per gallon just before the conflict with Iran began in late February 2026.

A new study by Joint Economic Committee (JEC) Minority shows that farmers of key crops in the U.S. spent $1.4 billion more on diesel fuel during the 2025-2026 planting season than they did last season. The JEC found that the average farmer in Rhode Island and across the country "spent $1500 more to refill their farm's onsite fuel tank - the common way that farmers buy and store diesel fuel - compared to the same high point during the 2025 planting season."

The JEC study analyzed corn, soybeans, wheat, cotton, and rice planted by U.S. farmers. The 2025-2026 increase in diesel spending to plant those crops was a 63 percent jump year-over-year, according to the analysis.

In Rhode Island, the JEC report found:

• The average farmer in Rhode Island spent as much as $1,520 more to refill their farm's onsite fuel tank as compared to the same high point during the 2025 planting season.

• On average, Ocean State farmers this spring spent $203 more to fill a single grain truck and $247 more to fill a single tractor as compared to last planting season.

U.S. Senator Jack Reed says rising diesel prices caused by President Trump's reckless war with Iran is cutting thousands of dollars from already thin profit margins, while Trump's chaotic tariffs on agricultural products and deep cuts at the U.S. Department of Agriculture (USDA) have decimated export markets for U.S.-grown crops and shriveled federal support for local farmers.

"Farming is a tough job and President Trump is making it harder by raising prices, sowing chaos and uncertainty, and cutting targeted federal funding to help support small and mid-size farmers. By their nature, farmers are resilient. But the Trump Administration has inflicted serious financial hardship on family farms and it's past time for Congress to step up and provide some needed certainty and stability for farmers and overdue accountability for this Administration," said Senator Reed.

According to the American Farm Bureau Federation, row crop producers are expected to lose $32 billion in 2027 in addition to the $31 billion they are slated to lose this year.

Reed noted fuel and fertilizers as key input costs that have experienced unnecessary price shocks due to Trump's war and tariffs. Fertilizer prices started to recede after President Trump and Iran announced a ceasefire in June, but fertilizer markets remain historically expensive - in some cases 26 percent higher than a year ago -- and are still vulnerable to ongoing disruptions in the Strait of Hormuz and supply chain bottlenecks.

And in addition to hitting farmers, the high diesel prices punish the truckers who deliver the fresh produce to grocery stores and restaurants -- cutting into profits and adding new uncertainty to an already volatile business.

Compounding the uncertainty, the Trump Administration slashed USDA's workforce by 24,000 jobs resulting in longer wait times for farmers who need help applying for financial assistance or special project funds. And President Trump's proposed 2027 budget would slash the USDA by 19 percent and completely defund the farmer-friendly $1.2 billion Food for Peace program. The Trump Administration's proposed budget would also gut the Rural Business Service, which promotes rural economic development, and cut the Agricultural Marketing Service budget by $61 million.

"Our farmers depend on diesel fuel to help them plant, harvest, and transport their crops and they need the federal government to be a reliable partner who promotes stability. Instead, President Trump is making life more expensive for farmers and consumers, I urge Republicans to work with Democrats to help lower prices and end the war in Iran," said Reed.

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