High energy costs from Iran war heighten pressure on struggling Louisiana farmers: “It’s a game of survival”
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. Their corn crops need a nitrogen fertilizer called urea, and nearly half of global urea exports originate in the Persian Gulf, which has experienced a major shipping crisis due to the intermittent closures of the Strait of Hormuz during the war. The critical passageway also handles about 20% of the world’s oil.
Prices of urea spiked during the war, completely draining the Guererros’ fertilizer budget.
The Guererros disclosed they are currently overbudget on urea by about $120,000 to $130,000.
“It’s close, it’s real close,” David Guererro responded when asked if their farm will survive the cost hikes.
According to the American Farm Bureau Federation, last year U.S. farm bankruptcies saw a 46% increase from 2024.
Keahey, meanwhile, could charge Guererro more to treat his crops. Instead, he’s taking the hit.
“Right now, it’s a game of survival,” Keahey said. “… If the farmers aren’t in business, then I’m not in business.”
