Trump Unveils $12B Farmer Rescue Plan Amid Trade Turmoil
Trump launches a massive $12B farmer rescue plan to support struggling agriculture workers hit by trade wars and rising costs, boosting hope for the agriculture sector.
US President Donald Trump has announced a $12 billion (£9 billion) farm aid package to help farmers affected by low crop prices and the administration's ongoing trade war.
Most of the money – $11 billion – will be provided as one-time payments to farmers for row crops under the Agriculture Department's Farmer Bridge Assistance Program, while $1 billion has been reserved for crops not included in the program.
Although farmers have largely supported Trump, trade disputes, particularly with China, have impacted the agriculture sector during his second term.
On Monday, Trump threatened to impose an additional 5% tariff on Mexico in a dispute over water supplies to American farmers.
The White House says the aid package will help farmers who have been affected by "years of unfair trade actions" and accumulated inflation.
Trump made the announcement during an event at the White House with Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins.
Members of Congress and farmers of corn, cotton, sorghum, soybeans, rice, cattle, wheat, and potatoes were also present.
Trump said, "Maximizing domestic agricultural production is a big part of how we're going to make America affordable again and lower grocery prices."
Sorghum and soybean farmers have been hit hard by the Trump administration's trade dispute with China, the largest importer of their crops.
Trump's farmer bailout raises fears about the winners and losers of the trade war.
According to a White House official, these payments are meant to help farmers sell this year's crop and plan for next year's crops, and will serve as a bridge until the administration's policies create "a better market environment."
Rollins said the final $1 billion would be held back to help officials understand the situation with "specialty crops" and ensure the government is "taking all necessary steps."
When asked if further Farm Aid packages were planned, Trump said it depended on how the market developed.
He said, "Farmers don't want handouts. They want a level playing field."
The announcement comes at a time when polls show Americans are increasingly concerned about rising prices—an issue Trump has repeatedly described as a "hoax" and "deception" perpetrated by Democrats.
The announcement also follows complaints from American farmers that Trump's trade policies have alienated their customers in China. For example, China is the world's largest market for soybeans and has been a major buyer from the United States for the past few decades.
But earlier this year, when Trump imposed new taxes on Chinese goods, Beijing blocked imports of American soybeans for months.
Later on Monday, Trump threatened to impose a new 5% tariff on Mexico, accusing it of violating an agreement that gives American farmers access to water.
He posted on social media, "This is very unfair to our American farmers who are entitled to this much-needed water."
Trump was referring to a more than 80-year-old treaty that provides the United States with water from tributaries of the Rio Grande.
For decades, the United States has accused Mexico of failing to meet the terms of the agreement.
Mark Legan, a livestock, corn, and soybean farmer in Putnam County, Indiana, said the government aid "will help our profits."
As crop prices have fallen and profits have declined, he can use the funds to replace tractors and other machinery—investments he had put on hold.
During his first term, Trump also provided farmers with aid packages, including $22 billion in 2019 and $46 billion in a 2020 package that included COVID-19 pandemic relief.
Mr. Legan said he expects the new package will be similar to what he received during Trump's first term, meaning it won't address persistent cost pressures and shrinking export markets.
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"The problem is still that our production costs are very high," Mr. Legan said, pointing to record-high prices for crop protection chemicals and seeds.
He added, "Although some markets have opened up, we're still not exporting as much agricultural products as we used to."
Another Illinois farmer, Brad Smith, heard news of the $12 billion package at the Illinois Farm Bureau State Convention in Chicago.
"None of us really like it, but we're in no position to refuse it," he said. "We hope we can minimize the need for anything like this in the future."
He said that if he receives government funding, the money will likely last him three days, after which he will use it to pay outstanding bills and hopefully buy seeds, chemicals, and fertilizer for next year's crop. Mr. Smith said that providing government assistance to farmers who need it most, rather than large farms, has been a challenge in the past.
Following a meeting between Trump and Chinese leader Xi Jinping in South Korea in October, the White House said China had planned to produce at least 12 million tonnes of wheat by the end of 2025.
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