Trump Promises US Farmers USD 15 Billion Ahead Of Midterms As Tariffs, Iran War Drive Up Costs

US President Donald Trump's administration has announced more than USD 15 billion in farm assistance ahead of the November 3 midterm elections, seeking to ease rising diesel and fertilizer costs linked partly to US tariffs and the war in Iran. The announcement comes as traditionally Republican agricultural states, including Iowa and Kansas, face competitive races. Trump visited both states on Sunday, November 1, to reach out to rural voters.

More than half the package, around USD 8 billion, will fund one-time payments to farmers struggling with higher diesel prices. The US Department of Agriculture (USDA) plans to announce payment details in November, with calculations based on planted acreage, production costs, crop yields and market prices. Payments are expected after the elections and could extend into January 2027.

The package also includes USD 5 billion in guaranteed loans for ranchers and fishermen, USD 1.8 billion for conservation programme participants, USD 573 million for fertiliser manufacturing, USD 57 million for meat processing expansion and USD 86.6 million in grants for speciality crop projects. The USDA will also purchase up to USD 472.5 million in agricultural commodities for charitable programmes. Other measures include expanding dyed diesel sales, improving cattle sale data transparency and strengthening wolf management to protect livestock. Separately, USD 13.8 billion in safety-net payments is planned for eligible 2025 crop producers, including corn, soybean, wheat and rice farmers.

Farmers have struggled with rising input costs, tariffs that increased equipment expenses and trade tensions with China that disrupted US agricultural exports. According to AAA, diesel averaged USD 6.32 per gallon on Friday, around 70 per cent higher than a year earlier. Filling a 100-gallon tank now costs approximately USD 260 more.

Kansas State University specialist Gregg Ibendahl said the payments could cover increased fuel costs and help with fertiliser expenses but warned that temporary assistance would not solve long-term financial problems. Wichita State University professor Alexandra Middlewood said farmers had mixed reactions, with some viewing the package as a temporary bailout.

Rural voters also face concerns over agricultural labour shortages linked to deportations, reduced foreign aid and cuts to the Supplemental Nutrition Assistance Program (SNAP), which affect agricultural markets. Emporia State University professor Michael Smith said some voters admired Trump personally but disagreed with his policies.