Trump’s $12 billion promise for farmers! US admin steps in to aid US agri sector; relief package funded through tariff inflows
US President Donald Trump on Monday unveiled a $12 billion relief package for American farmers, aiming to soften the financial blow of the ongoing trade war with China, which has driven up production costs and slashed crop sales. The announcement was made at the White House during a roundtable meeting attended by agriculture secretary Brooke Rollins, lawmakers from key farming states, and growers grappling with tariff-induced market losses.Farmers who attended the meeting told Trump that they see the relief as a crucial lifeline.
“With this bridge payment, we’ll be able to farm another year,” Iowa farmer Cordt Holub said as the president unveiled the plan.Rollins said the aid includes $11 billion earmarked for one-time payments to row-crop producers, and an additional $1 billion reserved for specialty crop support while officials study the specific pressures on those farmers.
She said the money should start reaching growers before the end of February.
Trump said tariff revenue will supply the funds, adding, “We looked at how they were hurt, to what extent they were hurt,” AP cited.A USDA formula based on estimated production costs is set to determine payments later this month, with compensation calculated per acre and capped at $155,000 per farm or individual.
The programme excludes anyone earning more than $900,000 a year, a limit that will block the largest commercial farms from receiving the biggest payouts, an issue that drew criticism during Trump’s first term.The political stakes are high.
Farmers have been among Trump’s core supporters, yet the volatility of his tariff decisions and the effect on agricultural markets have fuelled frustration.
The White House has positioned this latest package as part of its defence of Trump’s handling of the broader economy.
He is scheduled to travel to Pennsylvania on Tuesday to speak about affordability, an issue that has increasingly shaped voter concerns.
Chinese soybean buys lag behind expectations
Soybeans and sorghum have suffered the largest blow from the trade conflict because more than half of their annual production normally goes overseas, predominantly to China.
Following a meeting between Trump and Chinese President Xi Jinping in South Korea in October, the White House said Beijing had pledged to buy at least 12 million metric tonnes of US soybeans by the year’s end and 25 million metric tonnes annually for the next three years. China already holds the title of the world’s biggest soybean buyer, though it has been expanding its procurement from Brazil and other South American exporters.Since Trump announced the agreement at the end of October, China has buyd just over 2.8 million metric tonnes, around a quarter of the volume administration officials originally said would be bought.
Treasury Secretary Scott Bessent has insisted China is still on pace to meet the target, though not until the end of February, two months later than the White House first signalled.The scale of the $12 billion aid package is roughly equivalent to the total value of US soybean exports to China in 2024, and about half of all US agricultural exports to China that year.
Aid offers relief, not security
Farmers say the government support is welcome but emphasise that it cannot resolve the core structural challenge of soaring costs and unpredictable markets.
Trump authorised more than $22 billion in farming aid in 2019 at the start of the trade dispute and nearly $46 billion in 2020, though that total included pandemic-related assistance.“That’s a start, but I think we need to be looking for some avenues to find other funding opportunities and we need to get our markets going.
That’s where we want to be able to make a living from,” Caleb Ragland, a Kentucky grower and president of the American Soybean Association told AP.Farmers who rent most of the land they work are in the most vulnerable position because they lack equity to borrow against.
The risk is that, if smaller producers cannot stay afloat this year, consolidation within the industry could intensify.Iowa farmer Robb Ewoldt owns only 160 of the 2,000 acres he cultivates and has begun selling non-essential machinery and considering overnight trucking work to generate more income.
“It is to the point where I don’t want to saddle my kid with the kind of stress that my wife and I are under right now,” he said.Others remain hopeful that most farms will endure.
Minnesota farmer Darin Johnson, whose family operation stretches back four generations, said, “A lot of farms are pretty well-established and they have the equity to be able to still keep borrowing money to get through tougher times like this.”
New scrutiny on food supply chain pricing
Trump is also facing mounting pressure to act on surging beef prices.
He has publicly accused foreign-owned meat packers of artificially inflating prices and has asked the Department of Justice to investigate, although he has not supplied evidence to support his claims.On Saturday, he signed an executive order authorising the Justice Department and Federal Trade Commission to examine “anti-competitive behaviour” in food supply chains, including fertiliser, seed and equipment, and to consider enforcement or regulatory action where needed.
