Why Trump is offering $12B aid to US farmers
What's the story
US President Donald Trump will announce a $12 billion farm aid package today. The announcement comes as farming communities, a key support base for Trump, continue to struggle with low crop prices and the fallout of his tariff policies. The aid package includes up to $11 billion in one-time payments for crop farmers under the Farmer Bridge Assistance program.
Crop coverage
Aid package to support various crops and livestock
The remaining $1 billion of the aid package is reserved for crops not covered under the Farmer Bridge Assistance program. The announcement will be made at an event with farmers from several sectors including corn, cotton, sorghum, soybean, rice, cattle, wheat, and potatoes. The event will also be attended by Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins.
Economic impact
Farming communities face economic challenges
Farming communities have been hit hard by export market losses and shrinking federal safety net programs during Trump's second term. Soybean farmers, in particular, have struggled as Chinese purchases stalled earlier this year. However, after a late October agreement between Trump and Chinese President Xi Jinping, soybean purchases from China have picked up.
Past support
Previous aid packages
In his first term, Trump had provided $28 billion to farmers in 2018 and 2019 due to losses from a tariff dispute with China. Although the aid provided temporary relief, it had long-term effects as China started relying more on Brazil for soybean imports. Currently, crop prices are near their lowest since 2020 despite recent increases in soybean futures due to trade hopes with China.