President Donald Trump has announced an $8 billion relief program aimed at assisting farmers struggling with escalating diesel fuel costs during the crucial harvest season. The announcement came as the president seeks to address concerns over fuel prices with the midterm elections just two weeks away.
The Harvest Fuel Relief Program will provide one-time payments to farmers to mitigate the impact of temporary market disruptions that have driven up input costs, particularly diesel fuel. The Department of Agriculture will use a formula to determine which farmers receive aid, considering factors such as expected crop losses, acreage, production costs, and yield prices.
Trump unveiled the plan at a rally outside Wichita, Kansas, highlighting the political sensitivity of fuel prices ahead of the midterms. "The Department of Agriculture will be launching a new harvest fuel relief program, providing our farmers with $8 billion in support to offset diesel costs during this harvest season," Trump stated.
Diesel fuel prices reached a record high of $6.52 per gallon last month and have since decreased to $6.32 as of Tuesday, according to AAA. This is a significant increase from the average of $3.63 per gallon recorded a year ago.
President Trump credited Republican Senator Roger Marshall of Kansas for advocating for the relief package. "Roger Marshall is the leader who fought for that to happen," Trump said at the rally, where Marshall was present. Senator Marshall is currently in a closely contested re-election campaign against Democratic pastor Adam Hamilton, with recent polls indicating a tight race.
The administration's efforts to address diesel costs have included other measures in the lead-up to the elections. On October 5, an executive order was signed to increase the availability of red-dyed diesel, tax-exempt fuel typically used for farming and construction, for highway vehicles. Additionally, the president announced a deal with Russia for the temporary purchase of diesel, a move that drew controversy due to existing congressional bans on Russian energy imports enacted after the invasion of Ukraine. Despite these actions, Trump has stated he does not intend to implement an export pause for diesel fuel.