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USDA Launches $8 Billion Harvest Fuel Relief Program for Farmers

One-time formula payments to offset record diesel costs will be run by the Farm Service Agency with commodity rates set for November.

Overview

  • President Trump announced the Harvest Fuel Relief plan at a Kansas rally and the USDA confirmed the agency will make $8 billion available for one-time payments to farmers.
  • The Farm Service Agency will use a uniform model based on planted acres, USDA cost and yield estimates, and market prices to calculate proportional payments.
  • The program will be financed through the Commodity Credit Corporation, farmers will not need crop insurance to qualify, and producers are asked to create a Login.gov account to prepare to apply.
  • USDA said commodity-specific payment rates for major crops will be released in November, which will determine how and when farmers receive aid.
  • The move follows a string of ad hoc payments this year and has drawn praise for short-term relief from farm groups and criticism that it is a temporary fix rather than a long-term policy solution as diesel and fertilizer costs rose after global supply disruptions tied to the Iran conflict.