The Trump administration promised farmers 15 billion dollars

Economics

Ahead of the midterm elections, the administration of U.S. President Donald Trump has promised to direct more than 15 billion dollars to agricultural producers. These initiatives are designed to compensate for the rise in prices for diesel fuel and fertilizer, which farmers have faced partly due to tariffs and the war in Iran. Amid heightened attention to rural areas, Trump visited Iowa and Kansas.

More than half of the stated amount—8 billion dollars—will go toward lump-sum payments to farmers affected by the surge in diesel prices, which is used for trucks, tractors, and combines. The Department of Agriculture also plans to allocate 13.8 billion dollars under social protection programs for producers of key crops for the 2025 harvest year, including corn, soybeans, wheat, and rice. In addition, no less than 5 billion dollars is provided in guaranteed loans for livestock animal producers and fishermen, 1.8 billion dollars to participants in conservation programs, 573 million for fertilizer production, 57 million for the expansion of meat processing, and 86.6 million in grants for specialty crop producers.

On Thursday, the agency also reported plans to purchase agricultural products worth up to 472.5 million dollars to support producers and transfer them to charitable organizations. Additionally, the expansion of off-road diesel fuel sales, increased transparency of livestock sales data, and strengthened measures to protect livestock from wolves were announced.

The past year has proved difficult for farmers due to rising fuel and fertilizer expenses, as well as last year's equipment tariffs and the trade war with China. According to the AAA auto club, on Friday the average price of diesel fuel was 6.32 dollars per gallon, which is 70% higher than figures from a year ago. Experts note that although temporary government payments will help farmers survive the current year and cover fuel expenses, they are short-term in nature and do not solve the broader pricing problems that producers will face when obtaining loans for the next year.