by Paris Apodaca
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.
Zippy Duvall, president of the American Farm Bureau, said farmers and ranchers welcomed “the administration’s announcement of $8 billion in relief through the Harvest Fuel Relief program to help farmers struggling with high diesel prices.”
“We appreciate President Trump and Secretary Rollins recognizing that higher diesel prices have squeezed farmers’ bottom lines. By building on the Farmer Bridge Assistance program, USDA will be able to quickly deliver this relief to farm country,” Duvall said.
“We look forward to working with the president and USDA to ensure specialty crop growers, livestock producers, fishermen and others get the support they need so they can continue growing the food America’s families rely on. We also value the president’s continued support for Congress passing a modernized farm bill, allowing year-round E15 and addressing agriculture’s labor needs,” he added.
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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Paris Apodaca is a reporter at Daily Caller News Foundation. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
