Facing tight midterm election races, the Trump administration says it will send $8 billion to U.S. farmers in the midst of harvest who are struggling with diesel fuel prices that are nearly double those of a year ago.
Speaking in the Wichita, Kansas, suburb of Park City, President Donald Trump on Oct. 19 announced what he called the “harvest fuel relief program.” He was holding a rally in support of incumbent Republican U.S. Sen. Roger Marshall, who is locked in an unexpectedly competitive midterm race against Democratic challenger Adam Hamilton.
“Tonight, I’m also pleased to announce that the Department of Agriculture will be launching a new harvest fuel relief program, providing our farmers with $8 billion in support to offset diesel costs during this harvest season,” Trump said.
U.S. Agriculture Secretary Brooke Rollins, in a separate statement, said the one-time payments will “help bring certainty to our farmers during this harvest so they can continue to feed our nation.”
Why Farmers Are Struggling
Over the past three years, production costs have outpaced the prices farmers receive for corn, soybeans and other crops. Inflation connected to Trump’s ongoing trade wars and the war in Iran have exacerbated their struggles.
With traffic through the Strait of Hormuz disrupted, U.S. diesel prices are about 75% higher than a year ago, reaching an average of $6.32 a gallon nationally on Oct. 20, according to AAA.
Higher gas and diesel prices have contributed to Trump’s low approval rating before the Nov. 3 midterm election that will determine control of Congress.
The direct payments follow Trump’s executive order Oct. 5 to defer collection of excise tax on so-called red-dye diesel fuel through the end of the year. The fuel is dyed red to ensure it’s used only in off-road farming and construction vehicles and is exempt from federal highway taxes.
How the Payments Will Work
The U.S. Department of Agriculture said money for the fuel relief program that Trump announced Oct. 19 will come from the Commodity Credit Corp., which serves as the primary financial institution for USDA price supports, income assistance and export programs.
The aid will be based on farmers’ reported planted acres and production cost, yield and price estimates, the USDA said. It said the program will “provide simple, proportional support to producers using a uniform formula to cover a portion of modeled losses during the 2026 crop year,” similar to bridge payments that farmers received through April.
The payment rates will be released in November, it said.
Reactions and Criticism
American Farm Bureau Federation President Zippy Duvall, in a statement, thanked the administration for its effort.
“We appreciate President Trump and Secretary Rollins recognizing that higher diesel prices have squeezed farmers’ bottom lines,” Duvall said. “By building on the Farmer Bridge Assistance program, USDA will be able to quickly deliver this relief to farm country.”
Iowa Farmers Union President Aaron Lehman, however, called it a “Hail Mary pass” by Trump “to fix problems his policies created.”
“Farmers have needed help for months because the policies pursued by the Trump administration, implemented by USDA, and supported by Republican members of Congress have led to ridiculously high prices for diesel and fertilizer,” Lehman said in a statement. “Our Iowa members of Congress have failed to push back as the President has pursued trade wars and a military war that have put farmers on the front line of the consequences of those policy choices.
“Farmers never should have been put in this position,” he said. “A Band-Aid response now, 2 weeks before the election, doesn’t fix the problem.”
Over the past year, the USDA has sent farmers $12 billion in one-time payments through the Farmer Bridge Assistance program and recently provided growers $14 billion in payments through enhanced crop insurance supports. Earlier in October, Trump announced a controversial deal with Russia, a major oil producer, to import diesel to bring down domestic fuel prices.
Reuters contributed to this article.
Donnelle Eller covers agriculture, the environment and energy for the Des Moines Register, part of the USA TODAY Network. Reach her at [email protected].
Reporting by Donnelle Eller, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
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