Donald Trump has announced new federal loan guarantees and revisions to renewable fuel standards to support American farmers and food suppliers during the ongoing US-Israel war on Iran. The measures were unveiled at a White House event on Friday, as the conflict continues to disrupt agricultural markets.
The Small Business Administration (SBA) will administer the loans, which carry a 90% federal guarantee—up from the standard 75%. Eligible small businesses can apply from 1 May. SBA Administrator Kelly Loeffler said the initiative aims to combat high food prices and strengthen the domestic supply chain, boosting production, processing, and distribution.
Trump also announced an increase in mandated volumes of homegrown biofuels, predicting over $10bn in rural economic benefits and 100,000 new jobs. “We’re going to prove that the golden age of American agriculture is right here and right now,” he stated.
Farmers have been hit hard by rising costs, particularly fertiliser and diesel, due to the closure of the Strait of Hormuz—a key route for crude oil and nitrogen. With spring planting underway, many are uncertain about their long-term viability. Although nearly 80% of farming-dependent counties voted for Trump in 2024, his second-term policies, including tariffs and immigration restrictions, have strained loyalty.
