Iran war's high energy costs squeeze Louisiana farmers

Reed Keahey, an agriculture pilot in northeast Louisiana, experiences sticker shock with the rising cost of Jet-A fuel. The price per gallon jumped from $2.46 in February to a peak of $4.11 in May, forcing him to spend over $30,000 for a single 7,500-gallon refill. "It puts a squeeze, but I can't let my farmers feel that squeeze that it's putting on me," Keahey told CBS News.

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It puts a squeeze, but I can't let my farmers feel that squeeze that it's putting on me.

Farmers David and Theresa Guererro are feeling the pinch from increased fertilizer costs. Urea, a critical nitrogen fertilizer, sees nearly half of its global exports originating from the Persian Gulf. Intermittent closures of the Strait of Hormuz due to the Iran war have caused a major shipping crisis, leading to a spike in urea prices. The Guererros are now over their fertilizer budget by approximately $120,000 to $130,000.

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It's close, it's real close.

"It's close, it's real close," David Guererro said when asked about the farm's survival amid these cost hikes. The American Farm Bureau Federation reported a 46% increase in U.S. farm bankruptcies last year compared to 2024. Keahey, despite being able to charge more, is absorbing the costs to keep his clients in business. "Right now, it's a game of survival," he stated. "... If the farmers aren't in business, then I'm not in business."

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Right now, it's a game of survival.