Trump Offers Farmers Diesel Aid. Why Are Prices Not Budging?

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President Donald Trump’s administration plans to send $8 billion to U.S. farmers in the midst of harvest, who are struggling with diesel fuel prices nearly double those from a year ago.

With less than a month until the midterm elections, Trump announced late Monday, Oct. 19, what he called the “harvest fuel relief program” during a political rally in the Wichita, Kansas, metro area.

“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.

The announcement comes as the price of diesel in the U.S. averaged $6.31 on Wednesday, Oct. 21, according to AAA. That’s up from an average of $3.62 one year ago on Oct. 21, 2025. Average diesel prices set a record all-time high of $6.52 per gallon on Sept. 22, 2026.

With that in mind, the USA TODAY Cars Team took a look at why Trump’s efforts to lower diesel and gas prices have failed to move the needle on pump pain.

Why Is Trump Trying to Bail Out Farmers Struggling With Diesel Prices?

Trump is trying to bail out farmers because average diesel prices in the U.S. have remained above $6 per gallon since Sept. 10.

Patrick De Haan, head of petroleum analysis at GasBuddy, said in a Sept. 10 blog post that traditional gas prices typically get a lot of attention when they are above $4 per gallon, but high diesel prices really affect farmers and the broader U.S. economy.

“Record diesel prices will impact every cargo, shipment, every delivery Americans are taking and are likely to reignite inflation up and down the supply chain,” he wrote. “And for now, it comes at a time of year when diesel prices also traditionally rise, adding more pain. I suggest Americans anticipate a costlier holiday season, as it appears diesel prices could continue climbing as geopolitical tensions continue to remain a main factor.”

Groups that lobby in Washington for farmers supported Trump’s effort to help growers who are dealing with high diesel costs.

“Farmers and ranchers welcome the administration’s announcement of $8 billion in relief through the Harvest Fuel Relief program to help farmers struggling with high diesel prices,” American Farm Bureau Federation President Zippy Duvall said in a statement.

Duvall also said he thanks Trump and U.S. Secretary of Agriculture Brooke Rollins for “recognizing that higher diesel prices have squeezed farmers’ bottom lines.”

Critics noted that Trump is moving to bail out farmers who are dealing with higher diesel prices because he started the Iran war Feb. 28.

“Trump’s war—and the subsequent shocks it has caused to the global diesel supply—have pushed the national average price in the U.S. up $2.70 per gallon from a year ago, a 74.6 percent increase, according to AAA data,” the Reason Foundation, a libertarian think tank, said in an Oct. 20 blog post. “The $8 billion program is part of a windfall of taxpayer money the Trump administration has sent to farmers as relief for harms caused by the president’s actions.”

Why Does Diesel Fuel Cost More Than Regular Gas?

Diesel fuel was historically cheaper than regular gasoline, except during exceptionally cold winters when there was greater demand for diesel and other heating oils, but that trend started reversing around September 2004, according to the U.S. Energy Information Administration.

The agency attributed the higher diesel costs to these three factors:

  • Higher demand for diesel fuel, especially in Europe, China, India and the United States.
  • Increased diesel production and distribution costs due to the transition to less-polluting, lower-sulfur diesel fuels in the United States.
  • Higher federal gas taxes for on-highway diesel fuel (24.4 cents per gallon), which is 6 cents per gallon higher than the 18.4 cents per gallon federal gas tax.

How Has Trump Previously Tried to Lower Gas and Diesel Prices?

The Trump administration has made several attempts this year to lower gas and diesel prices as voter concerns about pain at the pump have mounted.

Earlier in October, Trump attempted to lower diesel prices by boosting the use of red-dyed fuel and waiving some federal gas taxes. In September, Trump also pushed for a ban on diesel exports.

In July, the White House touted the launch of 25 Freedom Fuel gas stations in the Northeast, all selling fuel at $3.47 a gallon. But the stations were concentrated in Pennsylvania and New Jersey, and they appeared to have had little impact on prices at the pump in those states. The average price of regular gas in Pennsylvania on Oct. 21 was $4.48 per gallon, and the average price at the pump in New Jersey on Oct. 21 was $4.21.

Diesel prices in those states averaged $6.61 and $6.39 on Oct. 21, respectively.

The president has also previously pressured gas retailers to lower prices at the pump, accusing them of price gouging at a time when oil barrel prices were starting to fall.

Trump has been pushing Congress to pass legislation that would allow sales of higher-ethanol gasoline as U.S. lawmakers grapple with rising gas prices.

But De Haan said in a blog post that gas prices are likely to remain elevated as long as there is an ongoing military conflict in the Middle East.

“The scale of ongoing geopolitical escalations makes meaningful price relief unlikely in the near term,” De Haan wrote. “Motorists should brace for continued volatility ahead.”

Contributing: Donnelle Eller, Des Moines Register

Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at [email protected].

Reporting by Keith Laing, USA TODAY / USA TODAY. USA TODAY Network via Reuters Connect.

 

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