Trump unveils new loan guarantees for beleaguered farmers

President Donald Trump announced new loan guarantees for farmers and food suppliers, a bid to bolster US agricultural communities squeezed by the impact of the Iran war, tariffs and other challenges.

Trump said the loan guarantees would cover farmers and food suppliers, including vegetable, grain and seed farmers, cattle, pig and poultry producers, as well as grocery wholesalers and others. The Small Business Administration will administer the guarantees, according to a White House official who provided details on the plans ahead of the formal announcement.

Trump did not specify a dollar amount for the guarantees. The White House argued that the moves will help reduce input costs for growers and wholesalers and bring down grocery costs for American consumers.

“You’re very, very special people,” Trump said Friday at the White House, where he hosted a group of US farmers to celebrate National Agriculture Day. “You voted for me. I will never forget that.”

American farmers have been one of the president’s most loyal constituencies, but their businesses have been rocked by volatile market conditions that have been caused in part by Trump’s own policies. The administration’s efforts are aimed at shoring up their support ahead of November midterm elections that will determine control of Congress.

Trump on Friday said his administration would also update renewable fuel standards for 2026 and 2027, a boost to biofuel producers. He said the new standards will “generate over $10 billion of rural economic benefit, create an estimated 100,000 new jobs and massively increase our nation’s energy supply.”

“What they’ve done to the country is just incredible,” Trump said. “The environmentalists, I mean, they are terrorists.”

The president also touted new guidance for the Diesel Exhaust Fluid requirement, which affects diesel trucks and other agricultural equipment. The president called existing DEF rules “ridiculous” and said his changes would be “saving farmers and consumers billions and billions of dollars.” And he said he had spoken to Deere & Co., manufacturers of John Deere farm equipment, to work on producing cheaper tractors.

The guidance is aimed at making it easier to switch sensors for those vehicles, according to the White House, cutting costs. The SBA estimates the switch will help save Americans $13.8 billion.

The Iran war, which is nearing its one-month mark, has sent the costs of fertilizer and fuel — both crucial inputs for growing crops — skyrocketing. Those challenges come with growers already worried that a record corn crop and disruptions in export markets spurred by Trump’s tariff agenda will weigh on profits.

Any erosion of support among rural voters threatens to have damaging consequences for Republicans who are already facing an uphill battle in an election dominated by public discontent over Trump’s economic policies, specifically the cost of living. Added expenses for farmers could ripple through the rest of the economy as well, potentially leading to rises in food costs.

Among the industries that will be eligible to access the loan guarantees Trump is announcing Friday are oilseed, grain, vegetable, melon, fruit and tree nut farmers, as well as cattle ranchers, hog, pig, sheep and goat farmers and poultry and egg producers. The loans will also be accessible to those in fishing as well as wholesalers of farm and garden machinery, refrigerated truckers, and those dealing in warehousing and storage.

The administration has already been trying to curb price spikes for fertilizer. The agriculture industry has been warning that a lack of availability and rising costs for the vital crop nutrients are hitting farmers just as growers are starting to plant crops for the year. Agriculture Secretary Brooke Rollins said in an interview earlier this week that officials are “looking at every single tool” to alleviate the stress on farmers.

That includes steps to temporarily waive a shipping mandate so foreign-flagged vessels can carry fuel, fertilizer and other goods between US ports. Farm groups are lobbying to remove duties on phosphate fertilizers from Morocco, which holds some of the world’s largest reserves.

The American Farm Bureau Federation has also urged Trump to deploy the US Navy to escort fertilizer shipments through the Strait of Hormuz. Separately, Treasury Secretary Scott Bessent on Thursday said a US insurance program meant to boost shipping through the strait, a crucial waterway that has been effectively shuttered since the start of the war, will be ready soon.

Trump has previously thrown his support behind expanding sales of higher-ethanol E15 gasoline. The industry has been working to pass legislation that would allow year-round, nationwide sales of the fuel for more than a decade. This week, Trump’s Environmental Protection Agency announced it will waive E15 from US volatility requirements this summer but farm groups still say they need permanent legislation.

The US Department of Agriculture has been tapping a $12 billion aid program to bring relief to farmers.

Dissatisfaction with Trump’s agenda has been simmering within the agriculture community throughout the president’s second term, particularly over tariffs that restricted access to key economies like China, a major export market for soybeans.

Beijing had avoided buying US soybeans as a tariff fight between the countries escalated last year and began resuming purchases after a trade detente. Trump is set to meet Chinese leader Xi Jinping in May with trade a focal point of those talks.

– By  Elizabeth Elkin and Skylar Woodhouse (Bloomberg)