USDA pledges $15 billion to farmers ahead of midterms

The Trump administration has allocated $15 billion in financial support to U.S. agriculture producers in the lead up to the midterm elections.

The funds are designed to mitigate the impact of elevated diesel and fertilizer prices, costs that have risen due to tariffs and the war in Iran.

The Department of Agriculture announced the package in the final days before the election. The agency also plans to distribute $13.8 billion in safety net program payments for the 2025 crop year. These payments will offset shortfalls for growers of corn, soybeans, wheat, and rice.

More than half of the new $15 billion will fund an $8 billion one-time payment plan for farmers facing high diesel costs. The USDA stated it will release further details on these payments later this month. The timing of the disbursements has not been determined.

Gregg Ibendahl, a farm management specialist at Kansas State University, estimates the payments will more than cover the increase in fuel costs. He noted the funds could also assist with high fertilizer prices.

The package includes at least $5 billion in guaranteed loans for ranchers and fishermen. An additional $1.8 billion is set aside for producers and landowners in conservation programs. The allocation includes $573 million for fertilizer manufacturing projects and $57 million for expanding meat processors. Specialty crop producers will receive $86.6 million in grants for innovative projects.

On Thursday, the agency confirmed it will purchase up to $472.5 million in agricultural commodities to support producers and charitable programs. The USDA also announced measures to expand the sale of off-road diesel, improve cattle sale data transparency, and adjust wolf management policies to protect livestock.

Farmers have faced a difficult year due to increased input costs. Diesel prices averaged $6.32 per gallon on Friday. This figure is 70% higher than the price from one year ago, according to AAA. Filling a 100-gallon tank now costs $260 more than it did previously.

Ibendahl said the payments will help farmers who might otherwise lose money this year, though they do not resolve the underlying price drivers. He questioned how lenders will view temporary government subsidies when calculating future loan limits.

Alexandra Middlewood, an associate professor of political science at Wichita State University, reported mixed reactions from farmers. Many see the programs as one-time bailouts rather than long-term solutions. Michael Smith, a political science professor at Emporia State University, noted that while many rural voters support the president personally, they may not support his policies on the ballot.

Smith pointed out that immigrant deportations and cuts to foreign aid have affected the agricultural labor force and market. Middlewood said cost of living and health care access remain top concerns for rural voters. She expects independent voters to play a decisive role in the election outcome.