Louisiana farm feeling the pain as war-driven diesel spike hits hard

TANGIPAHOA PARISH, La. (WVUE) – Liuzza Family Farm is more than 7,000 miles from Iran, but the war in the region is still hitting home in Tangipahoa Parish.

The farm says the sharp rise in diesel prices is forcing it to conserve fuel and rethink future plans as energy costs climb. AAA listed Louisiana’s average diesel price at $5.009 a gallon on March 24, up from $4.735 a week earlier and $3.251 a month earlier.

“This is not a speed bump. This is a roadblock because fuel drives our whole production. Everything we do, every tractor uses diesel. Every truck uses diesel or gasoline,” said Joey Liuzza, co-owner of Liuzza Family Farm.

Joey Liuzza and his wife, Nichole, started their farm in 2022. They say farming is a constant balancing act, but right now, fuel costs are at the top of the list.

The farm usually spends between $3,000 and $5,000 a month on diesel. The Liuzzas estimate the higher cost of energy will raise the cost of producing strawberries and vegetables by 15% to 25% in the coming months.

“We do appreciate all the business we get from our local consumers, and we hope that they find a couple extra dollars in their budget for us,” said Nichole Liuzza, co-owner of Liuzza Family Farm.

Read more: Louisiana’s LNG industry could help fill natural gas gap amid war with Iran

The price pressure goes beyond diesel. The Associated Press reported that farmers across the United States are bracing for higher fertilizer prices and possible shortages because shipping disruptions tied to the Iran war are affecting supply.

AP also reported that the Strait of Hormuz has become a major pressure point in the conflict, with shipping traffic and energy flows disrupted as the war escalated. More than one-fifth of the world’s oil typically moves through that waterway.

Liuzza Family Farm says it is also dealing with rising fertilizer costs as those global disruptions ripple into Louisiana.

“Our crops are planted. Our planting is done. Our prices have been set. So, there’s no way for a farmer to go back and say, hey, we need you to pay more because of fuel costs,” Joey Liuzza said.

The farm said adding an energy surcharge, like some restaurants once did with eggs, is not a realistic option.

“In a perfect world if every farmer would say, we’re putting on a fuel surcharge, then the customers would pay it. The customers are about the bottom-line price and whoever is the cheapest that’s who gets the business,” Liuzza said.

The Liuzzas said they had hoped to expand next year, but those plans could be delayed if energy prices remain high.

“We’re still a fairly new farm, and it will be a significant hit on us. We really need to crunch the numbers and buckle down and see are we going to be able to expand next year,” Nichole Liuzza said.

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