Donald Trump Announces $8B Relief Package for Farmers as Diesel Hits $6.32 Amid Iran War

Farmers are to receive a one-off $8 billion (approximately £6 billion) lifeline to help cover harvest fuel bills as average diesel prices hit roughly $6.32 (approximately £4.72) a gallon, President Donald Trump told supporters at a Kansas rally on Monday, citing figures from motoring group AAA.

Announcing the new Harvest Fuel Relief Program, Trump said the payments were intended 'in support to offset diesel costs during this harvest season' amid pressure from farm-state Republicans alarmed by surging fuel prices during the war with Iran.

Trump Announces $8B for Farmers

According to an Agriculture Department release, the Harvest Fuel Relief Program will provide one-time payments to farmers. Trump described the funding as money 'in support to offset diesel costs during this harvest season'.

His announcement placed the emphasis on temporary assistance during harvest. The $8 billion (approximately £6 billion) is the amount available for the programme as a whole, with the Agriculture Department identifying individual payments as the means of delivering that support.

Agriculture Secretary Brooke Rollins stated that the programme would deliver 'critical support to farmers facing rising costs and market disruptions'.

Rollins referred to both rising costs and market disruptions, while Trump's explanation focused specifically on the expense of diesel during harvest. The supplied report does not specify eligibility requirements, individual payment amounts or when farmers would receive the money.

Campaign Rally Doubles as Farm Aid Rollout

The president announced the programme while campaigning for Republican Senator Roger Marshall, who is seeking re-election. Marshall faces Democratic opponent Adam Hamilton in a contest described in the supplied report as competitive. The Kansas appearance combined Trump's backing for Marshall with the announcement of financial assistance for farmers.

Trump credited the senator with securing the assistance, telling the rally, 'Roger Marshall is the leader who fought for that to happen.' He added, 'Roger got it to happen.'

The Agriculture Department's account described the payment arrangement, while Trump's rally remarks focused on the harvest costs it was intended to offset and the role he attributed to Marshall in securing support.

Diesel Surge at Heart of New Farm Payments

AAA's average of roughly $6.32 (approximately £4.72) per gallon compares with $3.63 (approximately £2.71) per gallon a year earlier. Those figures concern diesel, the fuel Trump singled out when explaining the purpose of the harvest payments.

The programme will offer financial assistance to farmers confronting that higher cost. Separately, Trump has announced steps concerning the availability of red-dyed diesel, which is typically employed in farm and construction equipment.

Red dye is added to indicate that the fuel is tax-exempt. Earlier this month, Trump announced steps to increase its availability as part of his efforts to lower high diesel costs.

The two initiatives address the fuel issue through different measures. The red-dyed diesel announcement concerned the availability of tax-exempt fuel, whereas the Agriculture Department described the new $8 billion (approximately £6 billion) programme as direct, one-time support for farmers during harvest.

Some Republicans have proposed a different response to diesel costs, calling for a pause to exports. That proposal concerns the movement of fuel abroad, while the newly announced programme provides one-time payments to farmers.

Trump addressed the export issue earlier this month, when he told reporters he would not authorise a diesel export ban.

He told reporters, 'We were never going to do it.'