A shallow recession, continued high gas and diesel prices, and a request to the Environmental Protection Agency to boost biodiesel volumes next year and the year after. These are future moves and predictions by Iowa Senator Chuck Grassley…
Recession expectations by analysts and policymakers are increasing as inflation and Fed interest rate hikes slow the economy. The only question is how bad it will be for agriculture and other sectors.
“Is it going to be worse if we get into a recession? I think it’s going to be a shallow recession, so I don’t think things are going to change much.”
Grassley says high gas and diesel prices while arguing about policies could change that. “We have the capability of producing more and more, yet, than we did pre-pandemic, and this administration is putting the Kibosh on that.”
Though Federal Reserve and American Farm Bureau economists also blame Russia’s war in Ukraine and resulting energy sanctions, further limiting global supply and raising fuel prices. Grassley has joined Minnesota Democrat Amy Klobuchar in appealing to EPA to require more biofuel use.
“Klobuchar and I are sending a letter urging EPA to increase volumes of biodiesel and renewable diesel for 2023 and 2024 RVOs, or Renewable Volume Obligations. Adding more homegrown fuels to the nation’s fuel supply will lower diesel prices.”
The average per gallon price for diesel last week was $5.57 per gallon, down modestly from a high of $5.81 last month.