Soaring diesel prices threaten collapse of timber industry: 'We're in trouble,' executive warns

American Loggers Council Executive Director Scott Dane joined FOX Business' Stuart Varney on "Varney & Co." to discuss the pressure higher diesel costs are putting on loggers and the steps he wants the administration to take. U.S. loggers face mounting pressure as soaring diesel costs eat into operating profits. "We're in trouble. There's no question about that. I just got a text this morning from a logger... Reaching out saying that they're dying in Virginia. The fuel costs are killing them," Dane said.

Dane said the industry's dependence on diesel has made the surge especially difficult to absorb, pointing to the cost of filling a logging truck and the growing share of operating expenses now going toward fuel. "As an example, to fill up a logging truck. You're looking at $1,350 to fill up the tank. Fuel costs used to be 25% of operating costs. Now they're 40, 45% of the operating costs, that's eroded any profitability within the timber industry," he said.

The pressure is being compounded by what Dane described as stagnant prices for loggers, limiting their ability to offset higher operating costs with additional revenue. "On our end, prices have remained flat. We're getting paid no more today than we were getting paid 10 years ago, roughly speaking," Dane said.

Dane said the American Loggers Council has raised the issue with the administration and called for steps aimed at easing diesel costs, including suspending the federal diesel fuel tax and halting diesel exports. "We have an emergency here, and under the Emergency Powers Act, the president should suspend the export of diesel out of the United States . It makes no sense," Dane said.