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International Business Times UK
International Business Times UK
Politics
Christian Nogot Puno

Farm Bailout Explained: The $11.1B Request, an $87.6B War Bill, and Diesel Nearly Doubling in a Year

Crop producers would share $10B in short-term support this year, while $1.1B would pay for damage from freezes in early 2026 (Credit: USDA NRCS)

The White House wants Congress to approve an $11.1B (about £8.3B) farm bailout, meaning emergency cash for US farmers. That money sits inside an $87.6B (about £65.5B) package that mostly pays for the war with Iran. Congress has not voted either sum into law, and farmers are still waiting.

Farmers and lawmakers in both parties blame the war for costlier diesel, which runs farm machinery. AAA, the motoring group, put the US average at a record $6.53 (about £4.88) a gallon on Tuesday 22 September. A year earlier it stood at $3.69 (about £2.76). One North Carolina farmer says neighbours are thinking of quitting.

Where the Money Would Go

Russell Vought, the White House spending chief, sent the request to House Speaker Mike Johnson on 24 June. Lawmakers call such a request a supplemental, meaning money beyond the normal yearly budget. Each chamber must then approve it. The farm share includes $10B (about £7.5B) for growers of crops such as corn, soybeans, and fruit planted this year. Another $1.1B (about £822M) would cover losses from last winter's storms and freezes.

The Defense Department would take $67.1B (about £50.2B), most of the $87.6B. That sum covers munitions, operations, and classified programmes. Agriculture Secretary Brooke Rollins testified to a Senate committee on 21 July that the aid would keep farms running until new trade deals arrive. Senator Patty Murray, the panel's top Democrat, said in June that President Donald Trump was 'asking taxpayers to pick up the tab.' Murray says Congress never authorised the war.

Why Massie Calls the Aid Ironic

Thomas Massie, an outgoing Republican congressman from Kentucky, runs a farm there. He called the aid ironic in remarks to The Hill on 21 July, arguing that the fighting raised the fuel and fertiliser prices the money would offset. Massie also blamed tariffs for higher farm equipment prices. 'The solution is [to] stop the war,' Massie told the paper. He made a similar case on X a day earlier, as his message below shows.

Matt Bell raises beef cattle and grows soybeans, corn, and wheat on his North Carolina farm. His diesel bill has roughly doubled in a year, he told CBS News. Bell used up his $35,000 (about £26,000) yearly fuel budget in August and expects to spend up to $60,000 (about £45,000) by December. Bell voted for Trump but says federal farm aid falls short, adding: 'I can't stay in business under these conditions.'

What Happens Next

The House narrowly passed a Republican budget plan in July that would allow up to $12B (about £9B) in farm aid. Senators have not yet voted on that plan. Trump then signed a stopgap funding law on 2 September that keeps federal spending at current levels until 11 December. That date falls after the 3 November midterm elections.

Bell, a Republican, told CBS News he will probably split his ballot in November. His soybeans face a second cost, because China still charges a 10 per cent tariff on them. The American Soybean Association has asked the president to seek its removal when he meets China's leader, Xi Jinping.

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