President Donald Trump announced on Monday a significant economic aid package aimed at American farmers facing challenges due to inflation. The U.S. government will allocate $12 billion in assistance, which Trump emphasized during a roundtable discussion, stating, “They’re the backbone of our country.” This initiative comes as farmers grapple with the impact of international trade shifts, particularly following China’s decision to reduce soybean purchases from the U.S. and instead source from Argentina.
During the meeting, attended by Agriculture Secretary Brooke Rollins, Treasury Secretary Scott Bessent, and several farmers, Trump indicated that the financial support would be derived from tariff revenues. He expressed a commitment to using these funds effectively to bolster the agricultural sector.
Details of the Financial Support
Secretary Rollins provided additional insights into the assistance structure, announcing an $11 billion bridge payment to farmers, which is expected to be disbursed by February 28, 2026. She clarified that, while $12 billion was mentioned, $1 billion would be held back to ensure adequate coverage for various agricultural sectors. “Today’s announcement covers all of our row crops, some specialty crops, and others that we are still working with to best understand where they are in the farm economy,” she stated.
The financial aid is particularly critical as U.S. farmers have faced difficulties since China opted to import a million tons of soybeans from Argentina after the South American country lifted a 26% tariff on its soybean exports. This shift has exerted additional pressure on American farmers who rely heavily on these exports.
Reopening of Farm Services and Previous Aid Efforts
In October, the Trump administration had already set in motion a $3 billion federal aid package for farmers, but it was stalled due to a government shutdown. In response to this situation, Trump made the decision to reopen nearly 2,100 Farm Service Agency offices across the country. These offices are crucial for farmers, providing essential services such as loans, disaster relief, and price guarantee programs.
A White House official confirmed that funds from the Commodity Credit Corporation, a division of the U.S. Department of Agriculture (USDA) focused on agricultural pricing, would be utilized to support the reopening of these offices and facilitate the distribution of aid to farmers.
This latest announcement signals the administration’s ongoing commitment to supporting the agricultural sector amidst volatile market conditions and changing global trade dynamics. The impact of this financial assistance is anticipated to be significant for many farmers struggling to navigate the current economic landscape.
