The U.S. Department of Agriculture has announced more than $15 billion in payments, loans and other initiatives for agricultural producers in the weeks before the Nov. 3 general election, including assistance intended to offset higher diesel and fertilizer costs.
The package includes an $8 billion one-time payment plan for farmers facing increased diesel costs. The USDA said it will provide additional details about the payments in November. Farmers use diesel for trucks, tractors and combines, and the initiatives were announced as producers faced higher operating expenses that the administration attributed largely to tariffs and the war in Iran.
“More than cover the increase in fuel costs.” — Gregg Ibendahl, a farm management specialist at Kansas State University
Ibendahl estimated that the fuel payments would more than cover producers’ increased fuel costs and said the money could also help with elevated fertilizer prices. The USDA has not identified when the one-time payments will reach farmers.
Programs include loans and conservation payments
More than $5 billion of the announced aid is designated for guaranteed loans for ranchers and fishermen. Other allocations include payments for conservation participants, fertilizer manufacturing and meat-processing capacity:
- $1.8 billion for producers and landowners who participated in conservation programs.
- $573 million for fertilizer manufacturing projects.
- $57 million to expand meat processors.
- $86.6 million in grants for innovative projects by specialty-crop producers.
The USDA also said Thursday that it would purchase up to $472.5 million in agricultural commodities. The purchases are intended to support producers while providing food to charitable programs. The funding will come primarily from the USDA and does not require immediate congressional approval, according to the agency.
Separate payments cover 2025 crops
In addition to the newly announced initiatives, the USDA plans $13.8 billion in safety-net payments for eligible producers for the 2025 crop year. The payments are intended to offset shortfalls for growers of major crops, including corn, soybeans, wheat and rice.
Rice is a major Arkansas crop, placing the state’s producers among those whose crop economics are covered by the USDA’s safety-net programs. The initiatives also come as President Donald Trump has increased his attention to rural areas, including visits Sunday to Iowa and Kansas, two days before the election. The aid announcements and rural appearances were made as traditionally Republican agricultural states included some competitive races, although the effect on voter turnout remained uncertain.
