TOPEKA (KSNT) – A new $8 billion federal relief program could help Kansas farmers cover rising production costs, but an agricultural economist said higher fertilizer prices could create another challenge heading into 2027.
President Donald Trump announced the Harvest Fuel Relief Program on Oct. 19. Staff with the U.S. Department of Agriculture (USDA) said the program will provide one-time payments to farmers to cover a portion of estimated losses during the 2026 crop year.
Gregg Ibendahl, an agricultural economist at Kansas State University, said fuel expenses can add up quickly for farmers, especially during harvest. He said the average farm in the Kansas Farm Business Association spent about $31,000 on fuel last year. He estimates that cost could climb to around $50,000 this year.
Ibendahl said farmers cannot easily pass those additional expenses on to buyers because they operate in a competitive market.
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“They’re basically price takers,” Ibendahl said. “This, you know, extra $30,000 in fuel costs that a lot of farmers are going to have that, you know, that come straight off their bottom line.”
Ibendahl said those additional expenses could be the difference between a farm making a profit and losing money. The USDA’s $8 billion program will use a formula based on planted acres, production cost estimates, crop yields and prices to determine payments.
Ibendahl said the funding could provide meaningful assistance to Kansas farmers, although the amount each farmer receives will depend on the crop. He also noted that payments will not necessarily be based directly on how much fuel an individual farmer uses.
USDA personnel expect to release payment rates for major row crops in November, with details for other eligible commodities to follow. While fuel costs are a concern during harvest, Ibendahl said fertilizer could be an even bigger expense for farmers preparing for next year’s growing season.
Ibendahl estimated fertilizer expenses are about four times the cost of fuel for a typical farm. He said fuel and fertilizer prices are connected to broader energy costs, which could make preparing for spring planting more expensive.
Ibendahl said the relief payments could help farmers cover some of those upcoming expenses as they plan for 2027. Machinery and land costs are also putting pressure on farmers, making it increasingly expensive to grow crops.
“It’s just really makes putting out an acre of crop a very expensive proposition these days,” Ibendahl said.
USDA officials are encouraging eligible farmers to create a Login.gov account linked to the department before applications become available. Pre-filled applications will be available online, according to the USDA.
Ibendahl said the payments may arrive after farmers have already absorbed this year’s higher fuel costs, but the money could help them prepare for next year’s expenses. He also said the industry needs longer-term solutions to address sudden increases in production costs rather than continually relying on one-time government payments.
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“It would be nice to actually get a farm bill that would actually address some of these things that we don’t always have to rely on ad hoc payments all the time,” Ibendahl said.
The USDA has not yet finalized payment rates for the Harvest Fuel Relief Program.
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