A Growing Crisis

Press Release

National Agriculture Week provides a great opportunity to recognize the strength and resiliency of Nebraska's agriculture producers. The Third District is the nation's leading congressional district in both total number of farms and market value of products sold. Nebraskans' dedication and ingenuity are second to none; however, all Americans are currently facing historic inflation. Rising costs, especially when it comes to fertilizer and fuel, are hitting the agriculture community particularly hard.

According to the American Automobile Association (AAA), the average price per gallon of gasoline in Nebraska has increased nearly 38 percent since this time last year, and diesel prices have risen by more than 50 percent. Farmers and ranchers are already forced to devote an outsized portion of their income to energy costs, and shocks like this are unsustainable.

The energy crisis also impacts producers by aggravating existing supply chain problems and further inflating other input costs. For example, rising diesel prices are hampering the rail industry's ability to ship last year's grain, even as railroads battle workforce shortages and the aftermath of 2021 hurricane and flooding damage to coastal ports. The U.S. Department of Agriculture's Grain Transportation Report indicated for the week ending March 21, the U.S. average diesel fuel price was $5.134 per gallon, more than 60 percent above the same week last year.

Additionally, according to the British commodity consultant group CRU, global fertilizer prices are up 30 percent since the beginning of 2022. This market strain is caused, in part, by Russia's invasion of Ukraine and subsequent suspension of outgoing fertilizer trade. According to the U.N. Food and Agriculture Organization, last year Russia was the world's leading exporter of nitrogen fertilizers and the second-largest supplier of both potassic and phosphorous fertilizers. While this has an immediate impact on input costs for producers, the long-term impact on yields and food prices will be felt for years to come.

With pressures mounting on all sides, America's need for energy independence is being underscored. Only an all-of-the-above energy plan will meet our needs and confront the challenges facing the world, and we would be foolish not to take full advantage of biofuel opportunities. I was pleased to see the Biden administration is considering relaxing restrictions on year-round E15 sales.

Still, it has been both predictable and disappointing to see how the president's ill-conceived promises to shut down domestic oil production have burdened American households. Since killing the potential for thousands of jobs and nearly 1 million more barrels of oil a day from the Keystone XL Pipeline on his first day in office, President Biden has also deliberately and repeatedly acted to gut federal gas and oil leasing. If the president would unleash American oil and gas, he would not have to beg Saudi Arabia for oil or consider lifting oil sanctions on the corrupt Venezuelan regime.

As the cost to produce food rises, scarcity hurts those most vulnerable. A global food shortage is looming, and at the G7 and NATO summit in Belgium, President Biden acknowledged this. The American heartland is working hard to meet demand. The best thing the president can do is work for them, not against them.

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