On Tuesday, the Trump administration announced an $8 billion bailout for farms struggling under the fast-rising diesel prices caused by President Donald Trump’s war with Iran. But as one expert was quick to point out, a bit of basic math reveals that the president’s attempt to bribe angry farmers in the run-up to the midterms does little to alleviate their plight.
“Trump administration promises ~$8 billion in fuel subsidies to US farms to offset sky-high diesel costs,” posted Bloomberg Energy and commodities columnist Javier Blas. “That’s an average of $4,250 per American farm, based on latest USDA data of 1.88 million farms.” That's not a big number, especially for bigger farms.
While Secretary of Agriculture Brooke L. Rollins' announcement touted this as proof that “President Trump is the most pro-farmer president of my lifetime and he is continuing to put Farmers First every day,” the math on this bailout looks worse the more you break it down. Based on the latest national average of diesel prices — roughly $6.32 per AAA — that $4,250 buys about 672 gallons. Diesel fuels a wide variety of farm transport and equipment, but if you take a mid-sized tractor doing basic plowing as an example – which uses around six gallons per hour (though a large tractor doing heavy work can use upwards of 16, so the lower number is being generous) – that results in 112 hours of operation, for one machine, doing modest work. For larger equipment doing heavy work, that $4,250 translates into around 40 hours of operation, but the war has kept diesel prices elevated for eight months, with no sign of ending anytime soon. Considering that U.S. farms use an average of three tractors each – along with plenty of other diesel-hungry machinery – it's clear that Trump’s big bailout is just a drop in the bucket. What’s more, the government’s announcement specified that this is a “one-time” payment.
"As a farmer of 50 years, this is embarrassing," said former GOP Chair Christopher Gibbs in response to the announcement. "This year one third of US farm income will have come from the taxpayers. The SAME taxpayers who are struggling at their own kitchen tables. I can't afford it, but however this comes, I'm pushing half to my local shelter and food bank."
Fuel prices have soared due to the closure of the Strait of Hormuz, and while gas prices have hit all American drivers, diesel prices have been a particularly major problem, as the rising expense for farmers and truckers ends up increasing prices across the board. As Fox News reports, the diesel situation has forced a wave of transportation companies into bankruptcy, while farmers in red states have increasingly turned on Trump. According to a Kansas cattle rancher who spoke with the Washington Examiner, high diesel prices “changed the whole dynamics of everything. You know, people can’t afford to give as much for the cattle now because they’re trying to afford the trucking to get them to their final destinations.”
With the GOP suffering in the midterm polls even in some of the country’s reddest corners, Trump has become increasingly frantic to solve the energy crisis he created. His most controversial effort has involved a deal to buy diesel from Russia, which critics have pointed out not only does little to ease prices, but extends a major lifeline to the Russian war effort while hurting the U.S. ally Ukraine. Because of all of this, asserts Fox financial analyst Stuart Varney, “Voters are exasperated… The news on energy is just not good.”
