President Donald Trump has announced $8 billion in financial assistance for American farmers facing sharply higher diesel costs during the harvest season, as the Agriculture Department forecasts rising production expenses and declining farm income.
Speaking at a rally in Kansas on Monday, Trump said the Department of Agriculture would launch a Harvest Fuel Relief program to help offset fuel costs. "When Republicans win, we will pass even more funding for our farmers. We love our farmers," Trump added, referring to the upcoming November 3 midterm elections.
— Secretary Brooke Rollins (@SecRollins) October 20, 2026🚨 BREAKING: @POTUS just announced $8 BILLION in relief for American farmers!
Through @USDA’s new Harvest Fuel Relief Program, we are delivering critical support to farmers facing rising costs and market disruptions.
President Trump is putting FARMERS FIRST and delivering when… pic.twitter.com/1xaIZd7RC6
Diesel prices reached a record $6.53 per gallon on September 22 before declining to approximately $6.32, still about 75% higher than a year earlier, according to CBS News. The USDA said the program would provide payments covering part of farmers' estimated losses for the 2026 crop year. Assistance will be calculated using planted acreage, production costs, crop yields and commodity prices.
Payment rates for major crops are expected in November, with details for other eligible agricultural products to follow. Farmers will not need crop insurance to qualify. "This $8 billion investment will help bring certainty to our farmers during this harvest," Agriculture Secretary Brooke Rollins said.
The department projects net farm income will decline 2.6% this year, while production costs rise 4.5%. Fuel and oil expenses alone are expected to increase nearly 30%. The announcement follows a December $12 billion agricultural aid package and an executive order earlier this month easing restrictions on tax-free diesel use.
Beyond fuel expenses, agricultural communities are confronting concerns about workforce availability amid the administration's immigration crackdown. An AP-KFF survey in early Octoberfound that approximately seven in 10 rural voters considered temporary or seasonal immigrant farmworkers important to their local economies.
Democratic lawmakers have argued that immigration raids are disrupting farm operations and contributing to higher food prices by reducing the availability of workers needed to plant, harvest and process crops.
Members of the Congressional Hispanic Caucus have pointed to rising produce prices, including a reported 32.1% increase in lettuce prices over the year ending in June, as evidence of the financial pressures facing consumers. However, those figures do not establish how much, if any, of the increase resulted from immigration enforcement.
The White House has rejected claims that its immigration policies are driving up grocery costs, defending the crackdown and blaming earlier price increases on the previous administration.
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