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CBS News·3 min read·medium

High energy costs from Iran war heighten pressure on struggling Louisiana farmers: "It's a game of survival"

M
Mark Strassmann
High energy costs from Iran war heighten pressure on struggling Louisiana farmers: "It's a game of survival"
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Louisiana farmers are facing severe financial strain due to rising fuel and fertilizer costs linked to the ongoing conflict in Iran. Agricultural businesses are struggling to maintain profitability as input costs outpace their budgets.

Why it matters

Geopolitical conflicts in the Middle East are creating direct economic ripple effects for the U.S. agricultural sector and food supply chains.

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Columbia, Louisiana — In northeast Louisiana, agriculture pilot Reed Keahey flies with sticker shock. His plane needs kerosene-based Jet-A fuel, the price of which has soared during the Iran war. A gallon that cost $2.46 in February, just before the war broke out, peaked at $4.11 in May. Keahey buys 7,500 gallons at a time. He said that when fuel hit $4.11, he spent a little more than $30,000 on one round of fuel. As of this week, it cost $3.18, but was rising again. "It puts a squeeze, but I can't let my farmers feel that squeeze that it's putting on me," Keahey told CBS News.With these fuel prices, the agricultural community in Louisiana feels there is little margin for error. David and Theresa Guererro own a farming business.

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