Trump Announces $12bn Aid Package for US Farmers Amid Ongoing Challenges
Former President Donald Trump has unveiled a $12 billion aid package aimed at supporting US farmers, though industry leaders warn it will not prevent thousands of farm bankruptcies anticipated in 2025. Approximately $11 billion of the USDA's Farmer Bridge Assistance Program will be allocated specifically to row-crop farmers.
Soybean farmers remain among the hardest hit, following disruptions from the China trade war. China accounted for about 54% of US soybean exports last year, highlighting the significant impact on this sector. Arkansas Farm Bureau President Dan Wright commented that the relief, estimated at roughly $50 per acre, is insufficient to save many family farms facing financial strain.
The aid package is designed as short-term support, with funds sourced from tariffs to finance a bridge-loan program. Historically, aid during the Trump era totaled about $23 billion, whereas 2025 is expected to require around $40 billion in combined economic and disaster relief.
Additionally, agricultural equipment manufacturer John Deere anticipates a pre-tax tariff impact of approximately $1.2 billion in fiscal year 2026, almost double the nearly $600 million recorded in 2025. Meanwhile, the Environmental Protection Agency is expected to raise renewable fuel standards for 2026–2027, including increased biomass-based diesel blending requirements; this move could help offset some export losses and strengthen the domestic biofuels market.
The Kansas City Federal Reserve has noted weakening agricultural credit conditions, with many farmers expected to roll over debt into the spring planting season, underscoring ongoing financial challenges in the sector.
