USDA’s recently announced Harvest Fuel Relief Program could “push US government payments to farmers in 2026 to $55.4 billion, based on USDA’s earlier net farm income forecast with $8 billion added to it. The highest previous aid year was $45.6 billion in 2020, driven by trade aid and pandemic payments.”
Farm Policy News
USDA to Provide $8 Billion in Diesel Fuel Aid to Farmers
President Donald Trump said on Monday the US Department of Agriculture will launch what he called a new ‘harvest fuel relief program’ that will provide farmers with $8 billion in support to offset diesel costs during the harvest season.
ARC & PLC Payments to Hit Record $13.8 Billion for 2025
USDA’s Farm Service Agency estimates Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) will generate approximately $13.8 billion in gross payments to eligible agricultural producers for the 2025 crop year — the largest annual payout by far since the key safety net programs were established in the 2014 Farm Bill.
China Buys First US Soybeans Since Trump-Xi Meeting
China has purchased more cargoes of US soybeans, extending a buying spree this week that marks its first acquisitions since the leaders of the two countries held a summit in late September. State-owned companies have booked at least 20 soybean shipments, equivalent to around 1.3 million tons.
EPA to Protect Biofuel Demand by Reallocating Small Refinery Exemptions
In a move aimed at protecting demand for ethanol and biodiesel, EPA Administrator Lee Zeldin used a trip to Iowa on Tuesday to announce a proposal to reallocate 770 million renewable fuel blending credits granted to small refiners by adding them to volume obligations for refiners either this year or next year.
Judge Says USDA Reorganization Likely Violates Congressional Directive
The Agriculture Department has been ordered to halt its reorganization and relocation efforts by a federal judge who said the department had likely violated a congressional directive prohibiting it from spending money on the plan.
Trump Import Plan Bringing in Less ‘Affordable’ Beef Than Allowed
Beef imports under the Trump administration’s temporary tariff-rate quota fell well short of the first monthly allocation, limiting the amount of additional supply reaching the U.S. market, according to University of Arkansas economist James Mitchell.
USDA Says Soy Crop Biggest Ever, Corn Second Biggest
The harvest for corn would be the second largest ever if a forecast calling for 16 billion bushels is realized, the Agriculture Department said in its October crop production report. Additionally, both soybean output and yield would be the biggest on record if realized.
Farm Sector Debt to Reach Record High $605 Billion in 2026
United States farm sector debt is expected to reach a record high $605.1 billion in 2026, according to the latest USDA forecast. But the rise in non-traditional and vendor credit has created some gaps in the federal government’s current ability to measure and track farm debt, US Department of Agriculture officials told Reuters.
USDA, FTC to Investigate Potential Anticompetitive Practices in Ag Equipment Industry
The Federal Trade Commission and U.S. Department of Agriculture have launched a probe into potential anticompetitive practices in the agricultural equipment markets. The federal agencies said they want to address the ‘growing number of complaints’ received by USDA that ‘farmers across the country face other barriers’ to acquiring equipment.
Trump Order Allows Tax-Exempt Diesel Use on Highways
US President Donald Trump signed an executive order on Monday to expand access to tax-exempt diesel. Trump said the directive will waive the off-road requirement for tax-free diesel and allow anyone to buy the red dye diesel fuel that is used by the agriculture industry and by some off-road vehicles.
Judge Extends Pause on USDA Employee Relocations
A federal judge in California extended last week a temporary pause in USDA employee relocations until Oct. 13 as he considers a preliminary injunction that would stop USDA indefinitely from enforcing employee relocations. He also said it was “significant” that Congress included a provision in a fiscal 2026 spending package that blocked the Agriculture Department from reorganizing without approval from the House and Senate appropriations committees.
Farm Bill Expires Again as Lawmakers Continue Negotiations
As the latest extension of the 2018 Farm Bill expired Sept. 30, Congress remained without a new long-term agriculture policy despite years of negotiations and temporary extensions. While the U.S. House passed a new Farm Bill earlier this year and the Senate Agriculture Committee advanced its own version in September, lawmakers have yet to reach a final agreement.
More Farmer Aid Unlikely Until After Midterm Elections
Republicans want to lump in about $11 billion in direct farm aid with a forthcoming defense spending package. But even if that measure clears Congress, there would be a delay before checks hit farmers’ bank accounts, likely around spring of 2027. That might come too late to save some farmers’ businesses after a brutal harvest season amid record-breaking diesel prices.
China to Slash Tariffs on US Ag Products, Excluding Soybeans
The U.S. and China extended the Busan Agreement, the trade truce between the two countries, to Jan. 10 while identifying more than 1,600 products, including agricultural commodities, for potential tariff reductions. But soybeans for food and crushing were excluded from the list, and negotiators did not announce new agricultural trade commitments or a timeline for implementing the potential tariff reductions.
Immigration Raids Disrupting Kansas Meatpacking Operations
Meatpacking industry groups raised concerns Friday that recent heightened immigration operations in Texas, Kansas and Oklahoma have caused employees to miss work, leading to problems at meat-related businesses that could ultimately raise prices for consumers. Meatpackers slaughtered an estimated 90,000 cattle on Thursday, down 16% from a week earlier, and 87,000 cattle on Friday, down 14% from last week, the US Department of Agriculture said.
Farm Bill Action Unlikely in Senate Until After Midterm Elections
The Senate’s version of the farm bill isn’t expected to be put to a vote in the chamber before the election and instead senators and House lawmakers will informally conference to work out differences, Senate Agriculture Committee Chairman John Boozman (R-Ark.) said Thursday. “We’ll get together with the House and the Senate and discuss and figure out a path,” Boozman said.
US & China Extend Trade Truce Until January as Xi Arrives in US
Chinese President Xi Jinping arrived in Washington on Wednesday, where he was met with a rare planeside greeting from President Donald Trump after their top officials agreed to extend a trade truce until January.
U.S. Weighing Diesel Export Ban Pushed by Ag Lawmakers
The Trump administration is examining whether a diesel export ban is a feasible way to address record-high prices for the critical fuel, Treasury Secretary Scott Bessent said Tuesday. Many of the calls for a diesel export ban are coming from lawmakers in states with agriculture-rich economies, like Iowa Republicans Sen. Chuck Grassley and Rep. Ashley Hinson.
Trump Says US Working to Buy Cheaper Potash from Belarus
President Donald Trump on Monday announced that he is working on a “massive deal” to purchase potash, a key fertilizer, from Belarus. “The pricing would be for substantially less than we are currently paying to Canada, very good news for our Farmers and Ranchers,” Trump said on his social media site, Truth Social.