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USDA pledges $15 billion to farmers

New subsidies aim to offset fuel and fertilizer spikes ahead of Tuesday's legislative vote.

By Julia Wang ·

Illustration for: USDA pledges $15 billion to farmers
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The U.S. Department of Agriculture announced a $15 billion package for producers in the days leading up to Tuesday's midterms. The administration framed the aid as a response to rising diesel and fertilizer prices driven by tariffs and the war in Iran. This move follows President Trump's Sunday visits to Iowa and Kansas, two states where rural constituencies hold considerable sway over the outcome.

The largest portion of the funding, $8 billion, will fund a one-time payment plan for growers affected by high fuel costs. The USDA said it would release more details on these payments later this month, though a specific timeline for when money reaches farmers has not been set. An additional $13.8 billion is allocated to existing safety net programs for crops like corn, soybeans, wheat, and rice for the 2025 harvest year. Smaller allocations include $5 billion in guaranteed loans for livestock and fish farmers, $1.8 billion for conservation participants, and $573 million for fertilizer manufacturing projects.

Diesel prices remained a major pain point for operators. According to the AAA, the national average stood at $6.32 per gallon on Friday. That figure is 70% higher than the price from a year ago. For a tractor with a 100-gallon tank, the cost to refuel has increased by $260 compared to last year.

Gregg Ibendahl, an agricultural management specialist at Kansas State University, said the payments would likely cover the extra fuel costs. He noted that the funds might also help with high fertilizer prices. However, he warned that these ad hoc payments do not solve the underlying structural issues pressing on farm prices. "It is difficult to go to your lender the following spring and say, 'Well, we looked pretty good this year, but it was all due to these extra, temporary government payments, so how much can you lend me for next year's crop?'" he stated.

Alexandra Middlewood, an associate professor of political science at Wichita State University, reported mixed reactions from farmers. Many are relieved their businesses will survive the year, but they view the aid as a short-term rescue rather than a long-term fix. Michael Smith, a political science professor at Emporia State University, pointed out that while many rural voters like the president personally, they may not support his policies. He noted that deportation and SNAP cuts have hurt the agricultural labor market and consumer base.

Middlewood said cost of living and healthcare access are the top concerns for rural voters. She does not expect frustrated rural voters to switch to the Democratic Party in a state that has long been a Republican stronghold. Instead, she anticipates that some may abstain or vote for independents. Smith emphasized that these independent voters will likely determine the final results of the election.

Source: The Hour

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