Farm Groups on Fuel Aid
Farm Groups Weigh In on $8 Billion in Diesel Aid, Press for Long-Term Solutions
DES MOINES, Iowa (DTN) -- While some farm groups thanked President Donald Trump for $8 billion in new ad-hoc aid, the Harvest Fuel Relief program, to cope with record-high diesel costs, groups also took the opportunity to push their legislative and policy issues.
Some groups also questioned the political timing of the announcement and criticized the Trump administration's policies they say contributed to the farm-input crisis facing farmers.
The corn growers pressed for year-round sales of E15 to build demand while the cotton growers called for an ad-hoc package from Congress and championed legislation to boost domestic cotton processing.
Trump announced the $8 billion in fuel aid at a campaign event on Monday for Sen. Roger Marshall, R-Kan. The president also suggested during his speech that more support for farmers could be coming if Republicans win the midterm elections.
"And when the Republicans win, we will pass even more funding for our farmers. We love our farmers. I've always been -- and remember, I just gave the farmers $12 billion," Trump said. "And in my first term, I gave them $28 billion, if you remember. And that came out of the tariff money from China."
Looking to boost Republicans in midterm elections, the administration in recent weeks has been rolling out pro-farmer policies such as deferring federal taxes on diesel fuel in a Nebraska event. EPA Administrator Lee Zeldin was in Iowa last week to announce the agency would require oil refiners to absorb 770 million renewable fuel tax credits to make up for small-refinery exemptions this year.
USDA currently forecasts U.S. government payments to farmers for 2026 at a record $47.4 billion, a $19.5 billion increase from 2025. That includes $12 billion from the Farmer Bridge Assistance (FBA) program last spring that Trump referenced along with $13.8 billion in Agricultural Risk Coverage/Price Loss Coverage (ARC/PLC) payments going out this month.
Agriculture Secretary Brooke Rollins said details about the Harvest Fuel Relief program will be sent to farmers in November, though the $8 billion in aid checks will be delivered in January.
"Commodity-specific payment rates for Title I commodities will be released in November. Payment methodology for other eligible commodities will be announced at a later date," USDA stated.
The average retail diesel price on Tuesday was $6.32 a gallon nationally, according to AAA. That's $2.70 higher than a year ago.
SOME FARM GROUPS SEEK POLICY CHANGES
Matt Frostic, a Michigan farmer and president of the National Corn Growers Association, said corn farmers appreciate the administration recognizing how the high cost of inputs, especially diesel fuel prices during harvest time, is adding to the economic pain of America's farmers.
"As we work to tackle the many economic challenges facing growers and rural communities, we urge Washington to focus on durable, bipartisan, long-term solutions that will result in lasting improvements to the farm and national economy," Frostic said.
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Frostic called for Congress to pass legislation allowing year-round sales of E15 nationally and for the administration to support the U.S.-Mexico-Canada Agreement (USMCA), which faces a scheduled review, though the Trump administration is now negotiating with Mexico and ramped up trade disputes with Canada. Frostic added that other actions such as developing and implementing policies around maritime and sustainable aviation fuel would help corn farmers as well.
The National Cotton Council also welcomed assistance to "address near-term challenges," but NCC also urged "Congress to follow through with the earlier commitment of additional economic support." In addition, NCC said the cotton industry remains committed to urging Congress to pass the bipartisan Buying American Cotton Act, that would strengthen the long-term competitiveness and profitability of the U.S. cotton industry.
"This assistance will provide important support to farm families as they complete the 2026 harvest and make plans for the coming crop year," said Nathan Reed, an Arkansas farmer and chairman of NCC.
Sam Kieffer, CEO of the National Association of Wheat Growers, thanked Trump and Rollins for recognizing the financial pressures facing wheat farmers. Kieffer said NAWG is also ready to work on long-term solutions to the farm-input crisis.
"While this relief is welcome, high fuel prices and other input costs continue to squeeze farm margins and threaten the viability of family farms," Kieffer said.
Garret Love, chairman of the National Sorghum Producers, a farmer from Montezuma, Kansas, also thanked the president and secretary, as well as Marshall, for championing the relief.
"Sorghum farmers are facing tight margins, and higher diesel costs put even more pressure on our ability to bring a crop to market," Love said. He added, "This assistance will provide welcome support as growers finish harvest and prepare for the next growing season."
CALIFORNIA FARMER CONCERNS
Specialty crop producers and fishermen face additional uncertainty because USDA has yet to establish how their higher fuel costs will be calculated for assistance.
As DTN has previously reported, farmers in some states already bear the higher fuel costs without much comparable support. California farmers, for instance, face the highest fuel costs in the country, but the state's specialty crop producers don't have access to programs such as ARC/PLC. California farmers are projected to receive $242.6 million in ARC/PLC payments while diesel costs will be at least $1.19 billion and likely higher.
The California Farm Bureau Federation released a survey last week of more than 1,000 farmers citing that more than half of farmers surveyed said lower diesel prices would help keep their operation financially viable. Three out of four farmers reported increased financial stress from diesel prices and 40% of farmers are reducing field work because of diesel costs. Some farmers suggested they were selling property to pay for diesel fuel, the survey stated.
"Farmers and ranchers are sending a clear message: diesel prices matter," said Shannon Douglass, president of the California Farm Bureau. "Diesel powers the equipment that plants, irrigates, harvests and transports our food. These survey results show the financial pressure fuel costs are placing on family farms across California. Farmers won't survive if something doesn't change."
CRITICISMS OF TRUMP POLICIES
Other groups were more critical of the announcement. Farm Action noted the $12 billion Farmer Bridge Assistance (FBA) payments last spring, followed by $13.8 billion in ARC/PLC payments going out to farmers this month.
"Another multibillion-dollar bailout is further evidence of an agricultural economy in crisis," Farm Action stated. "Instead of addressing the policies and corporate power driving up costs and squeezing farm incomes, the administration continues to rely on taxpayer dollars to keep farmers afloat."
Taxpayers are effectively footing the bill for corporate profits, while farmers remain trapped in a cycle of dependence on government assistance. And with relief again modeled on traditional commodity programs, many farmers may be left waiting or left out altogether, Farm Action added.
"The administration should stop celebrating record farm bailouts and start fixing the broken agricultural economy that makes them necessary."
Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities and former rural development adviser at USDA, said the president's aid announcement to farmers ahead of the midterm elections follows a pattern in which the president's policies harm farmers, then he spends taxpayer funds to offset the damage caused. Ajilore pointed to the $28 billion in aid under the Market Facilitation Program (MFP) because of the 2018-19 trade war with China.
"This time, he has compounded the damage with a costly combination of an energy crisis, a trade war with U.S. allies, and a war in Iran that has driven up fertilizer and fuel costs for farmers already struggling to stay afloat," Ajilore said. "If Trump wants to provide meaningful relief to farmers, he should end the war in Iran and cease the harmful tariffs that are hurting the American economy."
Aaron Lehman, president of the Iowa Farmers Union, said the Trump administration's policies "have led to ridiculously high prices for diesel and fertilizer." The trade wars and the conflict in Iran have put farmers on the front line of the consequences of those policy choices, he said. Those problems won't be fixed by the president's "Hail Mary pass," Lehman said.
"Farmers never should have been put in this position. A Band-Aid response now, two weeks before the election, doesn't fix the problem," Lehman said. He added, "We need genuine efforts to help farmers now while fixing the real causes of our current situation. We need to conclude the war without sacrificing our farmers' bottom lines. We need to end the monopoly stranglehold on agricultural inputs. We need to become more energy independent by developing sustainable domestic alternatives."
Also see, "Rollins Announces $8 Billion in Harvest Fuel Aid,"
Also see, "ARC/PLC Payments Help Offset Diesel Costs, But Relief Varies by State,"
Chris Clayton can be reached at Chris.Clayton@dtn.com
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