Trump announces $12 billion aid package for farmers hurt by trade war
Corn and soybean farmer Don Swanson prepares to harvest his corn crop on Oct. 4, 2019, in Eldon, Iowa, as he and other Iowa farmers deal with the effects of weather and ongoing tariffs caused by the trade war between the U.S. and China, which continues to impact agricultural business.
Kia Johnson | Reuters
President Donald Trump announced Monday that his administration will distribute a $12 billion aid package to farmers strapped by the trade war between the United States and its major economic partners.
Trump said at a White House roundtable that the funds would come from U.S. customs revenues.
The bulk of that money — up to $11 billion — will go to the U.S. Department of Agriculture’s new Farmers Bridge Assistance program, which will provide one-time payments to row crop farmers, a White House official told CNBC early Monday.
The remaining $1 billion will be allocated to USDA’s assessment of changing market conditions, according to the official.
The President was joined at the event by Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins, as well as members of Congress and farmers who raise cattle, corn, cotton, sorghum, soybeans, rice, wheat and potatoes.
Democratic lawmakers criticized the administration ahead of the announcement.
“Trump wants credit for trying to fix the mess he created,” Senate Minority Leader Chuck Schumer, DY, said in an X post.
“Trump’s tariffs are straining our farmers, making it more expensive to grow food, and driving them into bankruptcy,” he wrote. “Farmers need markets to sell to, not consolation prizes for screwing up.”
“Trump’s farmer bailout won’t even restore farming communities,” Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, said in a statement. “While U.S.-grown agricultural products face more barriers than ever in foreign markets, they are still paying more for fertilizer, equipment and seeds.”
The administration is framing the money as “bridge payments” that will help farmers get through the period between the U.S. abandoning former President Joe Biden’s economic policies and the introduction of Trump’s current agenda.
But some in America’s agricultural industry say they are suffering as a result of the wide-ranging trade war, especially disputes with China, a major U.S. customer.
China halted purchases of U.S. soybeans for several months, especially during the crucial harvest season that begins in the fall.
Beijing resumed buying some soybeans in late October as Trump and Chinese President Xi Jinping approached a temporary trade truce. But China’s crop imports do not appear to be recovering to their current levels, and Beijing’s stockpiles have reached recent highs.
Bessent argued: China is on the right track It will meet projected purchases of 12 million metric tons of US soybeans by the end of February. The administration had previously announced that Beijing would reach the 12 million tonnes mark in the last two months of the year and purchase at least 25 million tonnes of soybeans in each of the next three years.
Chinese Purchased approximately 27 million metric tons of U.S. soybeans in 2024.
“Farmers have suffered for years under the Joe Biden administration, which has pushed the U.S. trade deficit to over $1.2 trillion, increased input costs, awakened DEI agricultural policies and more,” White House spokeswoman Anna Kelly told CNBC ahead of Monday’s aid announcement.
“In response, President Trump is helping our agriculture industry by negotiating new trade agreements to open new export markets to our farmers and strengthening the farm safety net for the first time in a decade,” Kelly said.
“Today’s announcement reflects the President’s commitment to helping our farmers who will have the support they need to close the gap between Biden’s failures and the successful policies the President has enacted.”
This is developing news. Please check back for updates.
