• President Trump is likely to take action on farmers later today, Agriculture Secretary Brooke Rollins said, as diesel costs surge during harvest.
  • Rollins urged states to act on diesel taxes and dyed-diesel rules, calling for broader relief beyond federal measures.
  • A coordinated G7/IEA release of 100 million barrels of emergency oil stocks, with diesel front-loaded, offers short-term supply relief, but farmers need immediate cost relief.

Trump Poised to Act as Harvest Fuel Costs Bite

President Donald Trump is expected to announce new measures to support U.S. farmers as early as today, Agriculture Secretary Brooke Rollins indicated, amid mounting pressure from soaring diesel prices that are squeezing farm margins during the critical fall harvest.

“The president is likely to take action on farmers later today,” Rollins said, according to people familiar with the matter. She also urged states to do more to address the cost of diesel, calling on them to use their existing authorities to provide relief.

Diesel prices have surged to painful levels for agricultural producers. The national on-highway diesel price stood at about $6.37 per gallon in late September, while farm diesel in the Corn Belt hovered near $6 per gallon. The increase has been dramatic: farm diesel jumped from $3.01 per gallon in September 2025 to $5.61 in September 2026, a rise of $2.60 per gallon. That spike directly raises operating costs for combines, tractors, irrigation systems, grain drying, and crop and livestock transportation—activities that cannot be deferred during harvest.

State and Federal Responses

Rollins’ remarks point to a two-pronged strategy: federal action from the Trump administration and pressure on states to act independently. At least 13 states have already implemented some form of temporary relief, including fuel-tax suspensions, changes to dyed-diesel enforcement, refunds, and higher weight limits for agricultural transport. Georgia suspended its fuel tax, while Arkansas, Indiana, Louisiana, Missouri, Nebraska, Oklahoma, Texas and others have loosened restrictions.

However, state efforts cannot address federal taxes or federal penalties. The American Farm Bureau Federation has asked the administration to temporarily suspend the federal highway diesel tax of 24.4 cents per gallon for agricultural transportation and to waive federal penalties for emergency on-road use of dyed diesel. The penalty for misuse of dyed diesel can be the greater of $1,000 or $10 per gallon, making a federal waiver critical.

On the supply side, the G7 and International Energy Agency coordinated a release of 100 million barrels of emergency oil stocks, with a substantial portion front-loaded as diesel. While this may modestly ease prices, Rollins characterized it as a short-term fix rather than a structural solution. The administration is also considering a diesel-export ban, encouraged by some agricultural lawmakers, though oil-industry interests oppose such a move, warning it could disrupt export markets and refinery economics.

Political and Economic Stakes

The timing is sensitive. October is a high-fuel-use period for harvest, and farmers cannot easily cut back on fuel consumption. High diesel prices are also affecting truckers, food processors, rural businesses, and ultimately consumers through higher transportation and food costs.

The farm sector is already under stress from a weak agricultural economy, trade-related uncertainty, and delayed additional aid. A proposed $11 billion in further direct farm assistance has been discussed, but reporting indicates it may not reach producers until spring 2027 if routed through a later legislative package. In June, the administration announced action to lower phosphate-fertilizer costs, with USDA estimating potential annual producer savings of approximately $1.82 billion—part of a broader strategy to target major input costs.

Critics argue that broader administration policies, including tariffs and foreign-policy choices, have contributed to farm costs. The administration instead emphasizes supply disruptions and its energy-independence agenda. The political tension is clear: the White House wants visible relief for rural producers, while farm groups argue that state-by-state efforts cannot resolve federal taxes and penalties.

What to Watch

The key development today is whether Trump announces a specific, implementable measure—such as a federal tax suspension, a waiver for dyed-diesel use, an additional supply release, or an export-related action—rather than another general commitment to farm relief. The G7 emergency release may provide some modest easing, but the speed and size of pass-through to farm regions remain uncertain. Without faster federal action, farmers may face continued pressure from fuel, fertilizer, labor, financing, and commodity-price risks.

Correction: An earlier version of this article misstated the timing of the G7 oil release. It was coordinated in late September.