During a Monday night campaign rally in Park City, Kan., President Donald Trump announced an $8 billion farmer assistance program intended to offset high diesel costs. According to a USDA release, the Harvest Fuel Relief Program will offer a one-time payment this harvest season to provide relief during “temporary market disruptions and increased input costs.”
“This $8 billion investment will help bring certainty to our farmers during this harvest, so they can continue to feed our nation,” said Agriculture Secretary Brooke Rollins, referring to Trump as the “most pro-farmer president” of her lifetime.
How will this work?
According to USDA, the Harvest Fuel Relief Program will be implemented similarly to the Farmer Bridge Assistance Program. Payments will be allocated proportionally using a uniform formula to cover a portion of modeled losses during the 2026 crop year. Those losses will be calculated using Farm Service Agency reported acres, Economic Research Service cost of production estimates, and World Agriculture Supply and Demand Estimates yields and prices.
The program will be funded through the Commodity Credit Corporation and administered by FSA.
Zippy Duvall, American Farm Bureau Federation president, said farmers and ranchers welcomed the announcement. In an Oct. 20 public statement, he said USDA will be able to quickly deliver relief to farm country by building on the Farmer Bridge Assistance Program.
“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,” Duvall said. “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.”
What do farmers need to do next?
Thus far, USDA has not announced a timeline on when farmers can expect to receive their funds. Payment rates for Title I commodities will be released in November.
“As USDA works to implement the program, we are actively reviewing all available data to determine payments, which are expected to be finalized and processed soon,” a USDA spokesperson told Farm Progress on Oct. 20.
Crop insurance enrollment is not required to participate. Payment rates for non-Title I commodities will be announced later. USDA is encouraging those producers to send data related to their increased fuel costs to harvestfuel@usda.gov. That information will be used to help determine payment rates.
USDA also advises all eligible producers to create a login.gov account linked to USDA before the application date is announced. Those with login.gov accounts will be provided with prefilled applications.
Sam Kieffer, National Association of Wheat Growers CEO, said he welcomes the payment program, but high fuel prices and other input costs continue to squeeze farm margins and threaten the viability of family farms.
“NAWG remains ready to roll up our sleeves and work with the administration and Congress to address the farm input cost crisis and advance long-term solutions that help keep American wheat growers competitive,” he said.
Farmers feel the pain
Diesel fuel prices have gone up more than 65% since Trump authorized military action in Iran. They hit a record high of $6.53 per gallon during the week of Sept. 21.
Crude oil futures had a brief sell-off from mid-September through early October, causing diesel prices to decline slightly. Since then, crude and diesel futures have again risen to near record levels.
To put those costs into layman’s terms, Mike Steenhoek, executive director of the Soy Transportation Coalition, put pencil to paper to quantify the pain farmers are feeling.
Comparing data from various months throughout 2025 and 2026, the cost of 1,000 gallons of diesel is $8,320 more expensive. Off-road diesel demands an even bigger bill. Assuming 6,000 gallons for farm equipment throughout the season, that increase balloons to an additional $27,300 leaving farmers’ pockets.
“I don’t know who has that kind of money lying around in their sofa cushions,” Steenhoek quipped.
Other efforts to combat diesel costs
With midterm elections looming, the president has attempted multiple initiatives to bring those costs down. Thus far, they have had minimal impact.
On Oct. 5, Trump signed an executive order allowing the use red-dye diesel on public highways, deferring federal taxes for the remainder of the year.
Four days later, Trump announced he struck a deal with Russia to immediately import 300,000 tons of diesel. That deal also authorized an additional 500,000 tons in November, and somewhere between 1 million to 3 million tons afterward.
According to U.S. Energy Information Administration data, the average price of diesel on Oct. 5 was $6.199 per gallon. As of Oct. 19, that price stood at $6.276.
The American Automobile Association reported that the average price per gallon for diesel was $6.31 per gallon as of Oct. 20. That’s $2.70 more than it was just one year ago, according to AAA. Unfortunately for farmers, it’s an additional expense they must incur.
“When the harvest is ready, you don’t just defer and wait to harvest your crops. It’s game time. It’s the culmination of all of your hard work that you’ve done over the course of a year,” Steenhoek said. “It’s really an unavoidable expense.”
Bruce Blythe, senior editor of commodities, contributed to this report.