The announcement
President Trump announced the Harvest Fuel Relief Program on Monday, Oct. 19, at a Kansas rally for Sen. Roger Marshall, R-Kan. (Newsweek; Farm Policy News). Agriculture Secretary Brooke Rollins released the details late that day (DTN). The program will make up to $8 billion available in one-time payments to farmers (Radio Iowa).
How the payments work
USDA will use a uniform formula based on planted acres, production costs, yields and prices. The Farm Service Agency will run the program with Commodity Credit Corporation money. Crop insurance is not required (DTN).
DTN reports Title I payment rates will be released in November, with no payments before the election. Radio Iowa says first payments for crops including corn, soybeans, barley, oats and wheat will come in November (Radio Iowa). As of Tuesday, USDA had not announced an application date or payment schedule (Newsweek).
Fuel prices and a slow harvest
DTN reported Tuesday that Iowa diesel rose three cents last week to a statewide average of $6.07 a gallon, up from $3.45 a year ago (DTN). Newsweek put the Iowa average at about $6.16 (Newsweek).
Iowa soybeans are 57% harvested, 17% behind the five-year average. Corn is 26% harvested, 24% behind, after early wet conditions kept farmers out of fields (Radio Iowa).
Earlier this month, Gov. Kim Reynolds issued a disaster proclamation letting vehicles hauling listed farm products use dyed diesel on Iowa roads without state penalties or fuel tax, from Oct. 5 through Feb. 4, 2027 (Iowa DOT).
Reactions
Rollins said the "$8 billion investment will help bring certainty to our farmers during this harvest" (DTN). Trump told the rally: "When Republicans win, we will pass even more funding for our farmers" (Newsweek).
Sen. Chuck Grassley, R-Iowa, said: "we obviously are concerned about the price and glad to have the help." He said Iowa farmers have told him "they'd rather get their money from the marketplace than from the U.S. Treasury" (Radio Iowa).
Farm groups have welcomed the aid while arguing one-time payments will not bring long-term stability, Newsweek reports. National Corn Growers Association President Matt Frostic called for "durable, bipartisan, long-term solutions." National Farmers Union President Rob Larew said the aid would be "helpful for some farmers" but "one-time payments can't provide the stability they need to plan for the future."
Iowa Farmers Union President Aaron Lehman said: "A Band-Aid response now, two weeks before the election, doesn't fix the problem." The union has endorsed Democratic candidates. Newsweek cites Iowa Capital Dispatch for these comments (Newsweek).
In the 1st District race
At the Oct. 20 1st District debate on KWQC TV in Davenport, Republican Rep. Mariannette Miller-Meeks said, "Farmers are struggling as are many Iowans." She said better options than the payments would be more refinery capacity, a pause on diesel exports and temporary cuts to gas and diesel taxes.
Democrat Christina Bohannan said farmers "need all the help they can get." She cited Trump's tariff policies, saying the trade war with China "took away that market" for Iowa soybeans. An independent candidate is also on the ballot (Radio Iowa).