As farmers deal with weakened commodity demand, high fertilizer and fuel prices, and uncertainty around global trade, Congressional leaders from key ag states are calling for urgent economic relief. Sen. Chuck Grassley (R-Iowa) insists that any aid package must include permanent, year-round sales of higher ethanol blends, a change he says could trigger $25 billion in economic activity, including $10 billion in new corn demand.

Alongside Sen. Joni Ernst (R-Iowa) and Sen. Tammy Baldwin (D-Wis.), Grassley is backing a bipartisan bill that would require the USDA to study fertilizer market competition, amid concerns that consolidation is inflating prices for producers across the country. Fertilizer input costs, a long-standing concern for producers, have become central in ongoing debates about trade and supply chain resilience.

Sen. John Hoeven (R-N.D.), who chairs the Senate Agriculture Appropriations Subcommittee, says the proposed aid would be split in two parts. The first, funded by a $13 billion USDA Commodity Credit Corporation transfer, is being finalized now. The second would require Congress to ease restrictions on USDA's Section 32 authority, which is funded through tariff revenues and has historically supported commodity purchases and disaster assistance.

Despite court rulings questioning the legality of Trump-era emergency tariffs, Sen. John Boozman (R-Ark.), chair of the Senate Agriculture Committee, insists that Section 32 remains a viable funding source. With U.S. tariff revenues surpassing $364 billion in early 2025, lawmakers see opportunity to channel funds into agricultural support, regardless of the court's decision on broader tariff authority.

Complicating matters is the ongoing federal government shutdown, which has delayed the Biden administration's rollout of the proposed farm relief plan. A White House official acknowledged the holdup, stating, "We didn't expect the shutdown to continue this long... The intention is for something to come out soon."

At the same time, lawmakers from Florida are demanding that specialty crop producers-who face high input costs and chronic labor shortages-be included in any future USDA relief programs. Unlike row crop producers, many of these growers are excluded from existing revenue safety nets, relying instead on sporadic disaster assistance.

The political push reflects deep frustration in rural states. As Sen. Raphael Warnock (D-Ga.) put it:

"Farmers don't want aid, they want trade. They want an opportunity to do what farmers do... there's no coherent plan, and it's creating a lot of uncertainty and pain in Georgia."

With low prices, rising costs, and delayed federal action, the coming weeks will be critical for determining whether Congress and the administration can deliver meaningful support to the U.S. ag sector before the year's end.