Trump Announces $12 Billion Aid Package for US Farmers Amid Industry Crisis
President Trump has unveiled a $12 billion aid package intended to support US farmers facing severe financial challenges in 2025. Of this package, $11 billion is allocated to row-crop farmers through the USDA's Farmer Bridge Assistance Program. The package is presented as short-term relief funded by tariffs, aiming to provide some assistance amidst a challenging economic environment.
The US crop farming sector has suffered significant losses, with about $34.6 billion lost in 2025 before crop insurance and government support are considered. Both row-crop and specialty producers have been unprofitable this year, with the outlook for 2026 remaining bleak. Soybeans have been particularly hard hit by the ongoing China trade war, especially since China accounted for roughly 54% of US soybean exports last year.
Despite the aid package, industry leaders express pessimism. Dan Wright, president of the Arkansas Farm Bureau, noted the aid equates to roughly $50 per acre, insufficient to prevent thousands of family farms from facing bankruptcy this year. Farm bankruptcies are projected to exceed 1,000 in 2025, with Arkansas as the hardest hit state. This surpasses the 2019 peak of 599 filings but remains considerably lower than the crisis peak near 6,000 in 1987 during the 1980s farm crisis.
The broader impact of tariffs extends beyond farms. John Deere expects a pre-tax tariff impact of approximately $1.2 billion in fiscal 2026 (about $600 million in 2025), indicating significant tariff-related costs for farming equipment and affiliated sectors.
There is also potential support through policy mechanisms such as the Renewable Fuels Standard, which the EPA is set to raise for 2026–27. This includes increasing biomass-based diesel blending requirements that could help offset export losses and bolster domestic production.
Meanwhile, a tentative US–China trade truce has China pledging to purchase at least 12 million metric tons of US soybeans. However, compliance with this commitment remains uncertain, adding to the sector's uncertainty.
