Trump announces $8 billion diesel relief program for U.S. farmers

President Donald Trump announced an $8 billion relief program aimed at helping U.S. farmers cope with soaring diesel prices during a rally in Kansas, CBS News reported. The initiative, called the Harvest Fuel Relief program, is designed to offset diesel costs for the 2026 harvest season.

The U.S. Department of Agriculture (USDA) will administer the program, which calculates payments based on planted acreage, estimated production costs, and crop yields and prices, according to CBS News. Payment rates for major commodity crops are expected to be announced in November, with details for other eligible products to follow.

Farmers will not need crop insurance to qualify and can prepare to apply by creating a Login.gov account linked to the USDA. The USDA projects that net farm income will decline by 2.6% this year, with fuel and oil expenses expected to rise nearly 30%, CBS News reported.

Earlier in the month, Trump signed an executive order easing limits on the tax-free use of red-dyed diesel to further reduce costs for farmers and truckers. This follows a $12 billion aid package for farmers announced by the Trump administration in December.

Diesel prices reached a record high of $6.53 per gallon on September 22 but have since decreased slightly to an average of $6.32 per gallon, which remains significantly higher than the $3.62 per gallon average a year ago, according to AAA data cited by CBS News.