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Trump administration unveils $15 billion farm aid package before midterm elections

The USDA details new diesel subsidies and loans intended to offset high fuel and fertilizer costs facing U.S. agricultural producers.

By Alexei Brooks ·

Illustration for: Trump administration unveils $15 billion farm aid package before midterm elections
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The White House promised $15 billion in support for American farmers on Thursday, weeks before the mid-term elections. The package aims to offset the rising costs of diesel fuel and fertilizer that producers have absorbed due to presidential tariffs and the conflict in Iran.

Political analysts are watching whether this financial injection will sway voters in rural states where traditionally Republican seats are currently competitive. President Donald Trump visited Iowa and Kansas on Sunday, two days before the vote, signaling a renewed focus on agricultural regions.

The U.S. Department of Agriculture announced that the $15 billion figure is in addition to $13.8 billion already allocated for safety net programs. Those existing funds cover deficits for growers of corn, soybeans, wheat, and rice for the 2025 harvest year.

More than half of the new money will go toward an $8 billion one-time payment plan for farmers hit by soaring diesel prices. The agency said it would release more details on the distribution of these funds later this month. It remains unclear when the checks will reach producers who rely on diesel for trucks, tractors, and harvesters.

Gregg Ibendahl, an agricultural management specialist at Kansas State University, estimated the payments will cover the increase in fuel costs with room to spare. He noted the extra cash could also help with high fertilizer prices.

The department also allocated at least $5 billion in guaranteed loans for ranchers and fishers. Another $1.8 billion goes to producers and landowners who participated in conservation programs. Smaller amounts were designated for fertilizer manufacturing projects and meat processing plant expansions.

On Thursday, the agency reported it would purchase up to $472.5 million in agricultural products to support producers and supply charitable programs. It also announced measures to expand off-road diesel sales and improve data transparency for cattle sales.

Farmers have faced a difficult year as input costs climbed. Last year, tariffs raised equipment costs, and a trade war with China led to a near-boycott of U.S. agricultural products. On Friday, the national average for diesel was $6.32 per gallon. That is 70% higher than the price a year ago, according to the American Automobile Association.

Filling a 100-gallon tank now costs $260 more than it did 12 months ago. Ibendahl said input risk has hurt farmers the most this year, noting that while these ad-hoc payments help survival, they do not fix broader price pressures. He questioned how lenders will view farmers who only look profitable because of temporary government checks.

Alexandra Middlewood, an associate professor of political science at Wichita State University, reported mixed reactions from farmers. Many are relieved their businesses will survive the year but view the programs as stop-gap rescues rather than long-term solutions. Michael Smith, a political science professor at Emporia State University, said rural voters like Trump personally but dislike some of his policies that hurt the industry, such as deportations and cuts to foreign aid.

Smith observed that while voters may admire the man, they must decide if they like his policies when his name is not on the ballot. Middlewood said cost of living and healthcare access are primary concerns for rural voters. She does not expect frustrated voters to switch to the Democratic Party in states like Kansas, which have long been Republican bastions. However, some may abstain or vote for independents. Those independent voters will determine the final results in this election cycle.

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