Senator Chuck Grassley says he has doubts about the administration’s willingness to provide additional farm aid, while arguing that the most meaningful and lasting solution to farmers’ financial challenges is passage of permanent year-round E15 legislation. Grassley made the comments after being asked about recent remarks from U.S. Department of Agriculture Undersecretary Richard Fordyce, who told Reuters that USDA is not considering providing more than the $12 billion in farm aid that was recently announced.
“Sometimes I get the impression that the administration thinks that we don’t need more help.”
Grassley went on to criticize the farm policy advice he believes is reaching the White House at a time when many producers continue to face tight margins and elevated input costs.
“I think that the people advising the president on farm policy aren’t advising very well.”
Both agriculture committee chairs in Congress have indicated that more assistance may ultimately be needed. House Agriculture Committee Chairman Glenn Thompson has suggested another $10 billion could be required, reflecting ongoing concerns about farm income levels and the ability of existing safety-net programs to fully offset market pressures.
While acknowledging the likelihood of further aid discussions, Grassley said he believes long-term relief depends on strengthening demand through the marketplace rather than relying on federal payments. He pointed to permanent year-round E15 legislation as a policy change that could deliver substantial income support for corn producers. Congress has debated year-round E15 access for several years, but efforts to pass permanent authority have repeatedly stalled, often becoming entangled in broader energy, tax, or budget negotiations.
“But E15, I’m told, would take care of about 14 billion dollars of farmer income. So, see how important the marketplace would fill in for the corn producer, as opposed to getting a check from the federal government.”
Grassley said stronger ethanol demand could help lift corn prices, adding that prices above five dollars per bushel would provide significant relief to growers. Ethanol remains one of the largest domestic demand drivers for U.S. corn, and supporters of E15 argue that expanding access would increase consumption without requiring new government spending.
At the same time, Grassley cautioned that improved reference prices included in last summer’s tax legislation would still leave soybean producers facing prices a dollar or more below break-even levels. That dynamic, he warned, highlights why many farmers across different commodities continue to push for additional support, even as policymakers debate demand-driven solutions like E15.
Looking ahead, the debate over farm aid and ethanol policy is expected to continue as lawmakers consider what legislative vehicles might be available to address both short-term financial stress and longer-term market access for U.S. agriculture.
