By Ryan Hanrahan
Progressive Farmer’s Chris Clayton reported Tuesday that 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.”
The $55.4 billion number presumes that the new diesel aid payments go out to farmers by the end of the calendar year, as USDA has so far offered few details on the timeline for what farmers can expect with the program. $55.4 billion in government payments to farmers would be only $10 billion less than combined government payments in 2022, 2023, 2024 and 2025. Additionally, $55.4 billion in government payments would make up just under one-third of USDA’s total 2026 net farm income forecast.
The Wall Street Journal’s Patrick Thomas reported in late June that “government funding has played a bigger role supporting farm incomes over the past decade, with trade war-related payouts during Trump’s first and second terms; rescue funding through the Covid-19 pandemic; and checks to help farmers deal with low crop prices. During this year’s conflict in the Middle East, farmers have had to shell out more cash for fuel to run equipment and fertilizer for planting.”
“Trade groups representing farmers have pushed for more aid, saying it is vital to keep American agriculture afloat,” Thomas reported. “But some economists and industry analysts are raising concerns about the stepped-up government payments, saying it isn’t clear how much is required to maintain U.S. agricultural production.”
Source : illinois.edu