Trump Unveils 8 Billion Dollar Farm Fuel Relief Plan

President Donald Trump announced an $8 billion federal relief program for US farmers facing rising diesel expenses during the 2026 harvest season, unveiling the initiative at a rally in Kansas on Monday night. The Department of Agriculture will administer the Harvest Fuel Relief program to help offset agricultural fuel costs and estimated crop-year losses.

The announcement comes as diesel prices remain significantly above year-ago levels, increasing the cost of operating tractors, combines and other farm machinery. According to AAA data, the national average diesel price reached a record $6.53 per gallon on Sept. 22 before easing to $6.32, compared with $3.62 a year earlier.

Trump described the assistance as part of his administration's broader support for agricultural producers.

"Tonight I'm also pleased to announce that the Department of Agriculture will be launching a new Harvest Fuel Relief program, providing our farmers with $8 billion in support to offset diesel costs during this harvest season," Trump said at the Kansas rally.

He also linked additional agricultural funding to the upcoming political contest.

"When Republicans win, we will pass even more funding for our farmers. We love our farmers," he added.

The new initiative follows a $12 billion farm aid package announced by the Trump administration in December. Earlier in October, Trump also signed an executive order easing restrictions on tax-free use of red-dyed diesel, a measure intended to reduce fuel expenses for farmers and truckers.

Agriculture Secretary Brooke Rollins said the latest funding would provide support during a financially challenging harvest period.

"This $8 billion investment will help bring certainty to our farmers during this harvest so they can continue to feed our nation," Rollins said in a statement.

The USDA said payments will cover part of farmers' estimated losses for the 2026 crop year, with amounts calculated using a standardized formula. The calculation will consider 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.

The department plans to announce payment rates for major commodity crops in November, followed by eligibility and payment details for other products. Farmers will not need crop insurance to qualify, and prospective applicants can prepare by creating a Login.gov account linked to the USDA.

The agency's September forecast projected that net farm income would decline 2.6% in 2026 while production costs increased 4.5%. Fuel and oil expenses alone were expected to rise nearly 30%, underscoring the pressure that higher operating costs are placing on agricultural businesses.

Separately, Yahoo Finance reported that US equity futures were mostly lower before Tuesday's market opening as investors assessed developments including Trump's farm fuel assistance announcement.