USDA pledges $15 billion to farmers before midterms

The midterm elections are two days away, and the Trump administration has announced a $15 billion package for agricultural producers. The funds are designed to counter the higher costs for diesel and fertilizer that have weighed on the sector in recent weeks.

The Department of Agriculture also plans to distribute $13.8 billion in safety net payments for the 2025 crop year. These payments will offset shortfalls for farmers growing corn, soybeans, wheat, and rice. More than half of the new $15 billion package will go toward an $8 billion one-time payment plan for farmers facing soaring diesel prices.

The agency stated it will release more details about these payments this month. It is not yet clear when the money will reach the accounts of farmers who rely on diesel for trucks, tractors, and combines. Gregg Ibendahl, a farm management specialist at Kansas State University, estimated the payments would more than cover the increase in fuel costs. He noted the funds could also assist with high fertilizer prices.

At least $5 billion was announced in guaranteed loans for ranchers and fishermen. An additional $1.8 billion is designated for producers and landowners in conservation programs. The agency also allocated $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 said it would purchase up to $472.5 million in agricultural commodities to support producers and charitable programs. Other measures include expanding sales of off-road diesel, making cattle sale data more transparent, and strengthening wolf management policies to protect livestock.

Farmers have faced a frustrating year with increased costs for fertilizer and fuel making it difficult to turn a profit. Last year, tariffs raised equipment expenses, and a trade war with China led to a near boycott of U.S. agricultural goods. According to motor club AAA, diesel averaged $6.32 per gallon on Friday. That price is down slightly from its September peak but is 70% higher than a year ago. Filling a 100-gallon tank now costs $260 more than it did at this time last year.

Ibendahl said the ad hoc payments would be a big help for farmers who might otherwise lose money this year. However, he noted they do not address the underlying issues driving up prices. He questioned how farmers could explain to lenders next spring that their good year was due to temporary government payments rather than operational strength. Alexandra Middlewood, an associate professor of political science at Wichita State University, reported mixed reactions from farmers. They are happy their businesses will survive this year but view the programs as one-time bailouts rather than long-term solutions.

Rural voters have been a key group for Trump, but some policies have hurt the industry. Immigrant deportations have threatened the labor force, while cuts to foreign aid and SNAP food stamps have hurt the market for agricultural products. Michael Smith, a political science professor at Emporia State University, said some rural voters admire the president personally but not necessarily his policies. Middlewood does not expect rural voters to shift to the Democratic Party, given Kansas's history as a Republican stronghold. However, she warned that some voters may sit out the election or vote independent, which could hurt Republican candidates.