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Posted on 10/20/2026 11:06:28 AM PDT by DFG
President Donald Trump is handing American farmers an $8 billion lifeline as soaring diesel prices threaten to eat into harvest profits, leaving taxpayers to help cover rising agricultural costs.
The Department of Agriculture (USDA) will distribute one-time payments through its new Harvest Fuel Relief Program to offset rising fuel expenses and other financial pressures during the 2026 harvest season, according to the agency. The announcement follows months of rising diesel prices fueled partly by disruptions to global oil supplies amid the ongoing conflict with Iran, Reuters reported.
“This $8 billion dollar investment will help bring certainty to our farmers during this harvest so they can continue to feed our nation,” U.S. Department of Agriculture (USDA)Secretary Brooke Rollins said in a statement according to a Monday USDA press release.
“This is a great political move as the farmers are hit right at harvest — the key is that the program are income support rather than a direct subsidy that lowers the pump price of diesel or sets commodity prices,” Stuart Turley, energy analyst and president and CEO of Sandstone Group, told the Daily Caller News Foundation.
The White House Press Office directed the DCNF to the USDA’s Monday release when contacted about the program.
Diesel prices reached record highs in September before easing in October, remaining significantly higher than a year earlier. Farmers rely heavily on diesel to operate tractors, combines and other agricultural equipment during the fall harvest.
Rising diesel and fertilizer costs are squeezing American farmers as the Iran war disrupts global energy supplies. USDA projected fertilizer, lime and soil conditioner expenses would climb 15.3% in 2026, adding approximately $5.3 billion in costs that could eventually reach consumers at the grocery store.
“This will be a huge help for farmers cash flow, and they need all the help they can get right now,” Turley told DCNF.
The administration is tapping the Commodity Credit Corporation (CCC), a federal financing mechanism supporting agricultural programs, to fund the payments, according to Agri-Pulse. The Farm Service Agency will administer the program using a formula based on planted acreage, production costs, crop yields and market prices, USDA said.
However, farmers may not see the money immediately. USDA plans to announce commodity-specific payment rates in November, while the timeline and payment methodology for other eligible commodities remain undetermined, according to DTN.
The latest assistance follows another $12 billion in payments distributed to more than 560,000 farmers earlier this year through the Farmer Bridge Assistance Program, according to USDA.
Farmers are also facing a broader financial squeeze. USDA estimates net farm income will decline 2.6% this year while production costs rise 4.5%, with fuel and oil expenses expected to climb nearly 30%, CBS News reported.
Trump announced the program Monday during a campaign appearance in Kansas ahead of November’s midterm elections. Earlier this month, he also signed an executive order expanding access to tax-exempt diesel in an effort to ease fuel costs.
Despite the billions pledged, questions remain about how much relief individual farmers will receive and whether the payments will arrive in time to offset the costs of this year’s harvest. USDA has not yet released the crop-specific payment rates, according to its announcement.
“The way the program is set up, it is done right for American Farmers and will help lower costs so they won’t be passed onto consumers,” Turley told DCNF. “Great for both Farmers, and American consumers.”
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The power of incumbency
“This $8 billion dollar investment”
they have adopted language that Democrats use. Government handouts are always “investments”
The New Deal
YAY more welfare. Now announce more subsidies for ethanol.
AG is 2 percent of GDP but that small tiny group controls the Republicans. I have never got that.
The federal government would be much more helpful to farmers if they stopped trying to be helpful to farmers.
Harvest Fuel Relief Program
Food security is a proper issue for govt. We used to build grain bins and have a 3 year supply. Now if we don’t use the last bushel of old crop the day before the new crop comes in, we did it wrong.
crop insurance lobbyist were better than grain bin lobbyists. crop insurance was to solve the issues of yield and price. It took the risk out of farming.
govt did cause increased fuel prices but would this increase price put them out of business?
Don’t have an answer here but a reminder that food security is a proper issue. Have we done it right?
. The Farm Service Agency will administer the program using a formula based on planted acreage, production costs, crop yields and market prices,
There are just not that many farmers and ranchers. It’s not a huge voting block.
Trump wrecked commodities markets with his wild tariff gyrations; apparently the born and bred New Yorker never paused to remember that U.S. agriculture is a massive net exporter, and he blew up their markets.
Politically speaking, this was sabotaging your supporters in order to pander to your blood enemies, in this case, organized labor.
Trump then leaped into a war in the Persian Gulf that he refuses to end. If you start a war, Donald, be prepared to do what is necessary to win it.
So now he blames Ukraine and wants to bribe farmers to come back home on Election Day.
In other words, just more of the same. Where is this $8 billion coming from? When did Congress appropriate this? I presume we’re just borrowing whatever with the shabbiest fig leaf of legal cover while debt service now consumes over 40 percent of individual income tax receipts.
Diesel fuel deal with Russia. What’s the difference?
I don’t see the issue with Trump giving money to our farmers who, by the way, feed us. They can’t help the issue w/higher fuel and chemical prices. Some blame Trump for this, but what do these nay-sayers want a nuclear Iran? We had at least 2 presidents that flew cash to Iran on pallets. And, we have an issue with our farmers being given some money to make sure America has food. Didn’t we learn from the recent Soccer games when European athletes complimented America for being so friendly and were astonished that our stores are full of everything.
Meanwhile the soybean farmers are doing pretty well… between the desire for protein enriched foods and the use of soybean oil to make renewable diesel. The protein kick is also helping the pea farmers.
Except Democrats hate farmers and especially ranchers.
Taxpayers are covering the costs regardless, either through a program like this or through higher food costs. I suppose what could be said for this is that some farmers might be unable or unwilling to produce with current costs to do so, which could result in food shortages. Maybe the risk of that is low but the consequences might be huge so a program like this might be worth it in the end.
You like to eat, don't you? Imagine if farmers and ranchers went out of business because expenses exceeded income, as they currently are.
Trump did it because it was the right thing to do.
I think it was Dubya’s staff were all at one time worked for or were paid for by ADM. their grubby stinking fingers are in everything ag related. We can thank them for the billions spent on ethanol from food products.
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