Donald Trump is offering aid to farmers and food suppliers as they face a fresh set of challenges amid the US-Israel war on Iran, the White House announced Friday.
After a White House event with farmers on Friday, Trump introduced several new measures, including new federal loan guarantees and an update to renewable fuel standards, meant to boost US agriculture as the conflict in Iran continues.
“From Minnesota to Mississippi we’re lifting up our hard working farmers and ranchers and growers and we’re putting more money in American pockets,” Trump said at the event. “We’re going to prove that the golden age of American agriculture is right here and right now.”
The Small Business Administration (SBA) said in a statement that it will administer the loans, which aim to expand food production and supply and reduce grocery costs for consumers. The loans would come with a 90% federal guarantee, up from the 75% offered through the agency’s existing loan program. Certain small businesses would become eligible starting 1 May.
In a statement, Kelly Loeffler, the SBA administrator, a close Trump ally, said that the measure will “tackle the record-high prices of the Biden Administration”.
“The Trump SBA is proud to announce a new Grocery Guarantee that will drive even more investment in our nation’s food supply chain – infusing farmers, ranchers, and logistics providers with expanded access to capital that will increase production, processing and distribution,” Loeffler said.
The change to renewable fuel standards will boost the required volume of homegrown American biofuel, which Trump said will “generate over $10bn of rural economic benefit, create an estimated 100,000 new jobs and massively increase our nation’s energy supply”.
American farmers have struggled with high production costs for years, but the fallout from conflict in the Middle East has proven especially difficult in recent weeks.
Fertilizer and diesel prices have jumped significantly due to the closure of the strait of Hormuz, which is a key transport route for crude oil and nitrogen. Some farmers, as they head into the spring planting season, say they aren’t sure how long they’ll be able to stay in business given the current costs.
Farmers have proven one of Trump’s most loyal constituencies, with nearly 80% of farming-dependent counties voting for him in 2024. During his first time, Trump signed off on a massive farm bailout after his tariffs against China hurt American soybean farmers. Trump signed a similar executive order in December 2025 that gave $12bn in aid to farmers.
But Trump’s second-term policies have tested that loyalty for many of those farmers. Many farmers reported millions in missing funds after the Trump administration pulled support for US Department of Agriculture programs created under former president Joe Biden. And others said that Trump’s tariffs and immigration policies were hurting their ability to sustain their business.
