Trump’s $8 billion farm lifeline won’t fully solve farmers’ diesel problem

The Trump administration’s $8 billion relief program for farmers is throwing a lifeline to the industry, but producers are still facing lower margins due to high diesel prices amid the Iran war — and experts say the move might only buy time for solving deeper challenges. 

Through the initiative announced earlier this week, farmers will receive “one-time” payments from the U.S. Department of Agriculture (USDA) in the midst of harvest season. 

But diesel remains above $6 per gallon on average, and President Trump has not indicated he will wind down the nearly eight-month Iran conflict in the near future, even as Republicans in the farm-heavy heartland face national economic headwinds ahead of the midterms.

A gallon of diesel costs roughly $6.32 on average in the U.S., according to data from AAA. That is down about 20 cents from a month ago but still nearly $2.80 greater than a year ago. 

And it could take up to two years for the diesel market to return to normal, with the clock only starting when the Iran and Russia-Ukraine wars end, says Max Pyziur, the director of downstream, transportation fuels and natural gas projects at the Energy Policy Research Foundation.

“I think it’s going to take a long time,” he said.

Diesel price spikes, in tandem with elevated fertilizer costs, dealt farmers a difficult hand during the spring planting season. The $8 billion program will help — especially going into 2027, says Dr. Faith Parum, the deputy chief economist at the American Farm Bureau Federation.

“It will help our farmers make … the math make a little bit more sense as they sit down towards the end of the year and think about what’s next, and what’s 2027 look like,” Parum told The Hill.

“This is really helpful as they sit down with lenders, extension agents, and all of those trusted folks to think about what their farm looks like in 2027,” she added.

Parum noted the........

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