Trump announces $8 billion in diesel relief for U.S. farmers

Key points

• Trump announced $8 billion in aid to offset diesel costs for farmers during harvest season.
• Diesel hit a record $6.53 a gallon on Sept. 22 and averages $6.32, up from $3.62 a year ago.
• The USDA will announce payment rates for major commodity crops in November.

President Trump said Monday night at a rally in Kansas that his administration will provide $8 billion in aid to farmers hurt by record diesel prices. He said the Department of Agriculture will launch a new Harvest Fuel Relief program to offset diesel costs during the harvest season.

The announcement follows an executive order earlier this month easing limits on tax-free use of red-dyed diesel and a $12 billion aid package for farmers announced in December.

How the payments work

The USDA said the Harvest Fuel Relief program will pay farmers part of their estimated losses for the 2026 crop year using a standard formula. The calculation will use planted acreage reported to the Farm Service Agency, estimated production costs, and crop yields and prices from the USDA's World Agricultural Supply and Demand Estimates report.

Payment rates for major commodity crops will be announced in November, with details for other eligible products to follow. Farmers do not need crop insurance to qualify and can prepare by creating a Login.gov account linked to USDA.

This $8 billion investment will help bring certainty to our farmers during this harvest so they can continue to feed our nation

— U.S. Department of Agriculture Secretary Brooke Rollins

Pressure on farm finances

Diesel reached a record $6.53 a gallon on Sept. 22 and has eased slightly since, with average U.S. prices now at $6.32 a gallon, up from $3.62 a year ago, according to AAA data. The USDA estimates net farm income will drop 2.6% this year as production costs rise 4.5%, with fuel and oil expenses alone expected to jump nearly 30%, according to a September forecast.