Trump Unveils $12bn Aid Package for US Farmers Amid Ongoing Tariff Challenges
Former President Trump has introduced a $12 billion aid package designed to support US farmers affected by ongoing trade disruptions. The package includes $11 billion allocated through the USDA's Farmer Bridge Assistance Program, targeting row-crop farmers, and additional funds aimed at a bridge-loan program financed by tariff revenues. Agriculture Secretary Brooke Rollins described these measures as short-term relief.
Despite this intervention, industry leaders express concern that the aid will not be enough to prevent thousands of farm bankruptcies anticipated in 2025. The Arkansas Farm Bureau president criticized the support, stating that about $50 per acre is insufficient to offset the losses.
Soya bean farmers remain the hardest hit, as China – which accounted for approximately 54% of US soybean exports last year – continues to be affected by tariff-related disruptions. Although a tentative trade truce exists with China pledging to purchase at least 12 million metric tons of US soybeans, there is uncertainty regarding compliance with the agreement.
US crop farmers recorded losses of $34.6 billion in 2025 prior to receiving crop insurance and other government support. Weakened agricultural credit conditions have increased financing needs for spring inputs.
Historically, Trump-era aid payments totaled about $23 billion, while economic and disaster aid expected in 2025 is around $40 billion. Additionally, Deere has projected a pre-tax tariff impact of approximately $1.2 billion for fiscal 2026, compared to nearly $600 million in 2025.
Looking ahead, conditions for 2026 may improve if China resumes purchasing US agricultural exports and if the Environmental Protection Agency raises biofuel production under the Renewable Fuel Standard. These developments could help offset current losses, and some farmers might consider shifting to soybean cultivation in 2026 due to input cost and debt concerns.
