Senators back bill to boost reimbursements for farmer and rancher transportation costs

US Sens. Mazie K. Hirono (D-Hawaiʻi) and Dan Sullivan (R-Alaska) reintroduced legislation to increase funding for the US Department of Agriculture’s Reimbursement Transportation Cost Payment (RTCP) program. The program reimburses farmers and ranchers in Hawaiʻi, Alaska and other insular areas for transportation costs of supplies like feed, fertilizer and equipment parts.

The RTCP Revitalization Act would provide mandatory funding starting at $10 million in Fiscal Year 2026, rising to $15 million by 2031 and maintaining that funding level thereafter. It also removes current payment caps on the program and individual producers, with a goal of better meeting rising demand and costs.

“Farmers, ranchers and other agricultural producers work tirelessly to provide healthy and fresh produce for their communities,” Hirono said. “Those in geographically disadvantaged areas deserve fair compensation for the lengths at which they go to transport supplies.”

Sullivan added, “Alaska’s farmers and ranchers face greater obstacles getting their goods to market due to our state’s vast size, many remote communities and general lack of infrastructure. I’m glad to join my colleagues in Hawaii to support a vital USDA program that makes it possible for these hard-working Alaskans to support our economy and feed their fellow Americans.”

Created under the 2008 Farm Bill and administered by USDA since 2010, the RTCP program serves producers in Hawaiʻi, Alaska, Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, Micronesia, the Marshall Islands, Palau and the Virgin Islands.

Local groups endorsing the bill include the Hawaiʻi Farm Bureau, Hawaiʻi Cattlemen’s Council, Ulupono Initiative and many others.

“We deeply appreciate the leadership of Hawai‘i’s senators in reintroducing this crucial legislation to support our local farmers and ranchers,” said Murray Clay, a lobbyist and president of Ulupono Initiative, a Hawai‘i-focused impact investing firm. “Hawai‘i is about 2,400 miles from the continental United States and therefore is unusually burdened by transportation costs, creating unique challenges for our agricultural community. By expanding the number of agricultural producers who can participate in the RTCP program and increasing the amount of funding they can receive, this bill directly addresses one of the most significant cost barriers facing the Islands’ food producers. This would help hundreds of Hawai‘i farms with substantial savings on eligible transportation costs and, as a result, support their long-term viability as our state continues to work towards our agricultural sustainability goals.”

The legislation is also cosponsored by Sen. Brian Schatz (D-Hawaiʻi).

The full bill text and a one-page summary of the bill are available online.