Trump Announces $12 Billion Aid Package for Farmers Hit by Trade Disputes

President Donald Trump during a roundtable at White House. Photo Credits: AP / Alex Brandon

President Donald Trump announced a $12 billion aid package for American farmers affected by trade disruptions and rising costs during a White House event on December 8.

The assistance targets producers of crops such as corn, soybeans, wheat, cotton, sorghum, rice, barley, chickpeas, lentils, oats, peanuts, peas, canola, crambe, flax, mustard, rapeseed, safflower, sesame and sunflower, with payments set for distribution by the end of February 2026.

The U.S. Department of Agriculture will administer the funds through the Farmer Bridge Assistance program, allocating $11 billion for row-crop farmers and reserving $1 billion for specialty crops like fruits, vegetables and sugar.

Eligibility requires farmers to file accurate 2025 acreage reports with the Farm Service Agency by December 19, and individual payments are capped at $155,000 for those with adjusted gross incomes below $900,000.

President Trump said:

"I'm delighted to announce this afternoon that the United States will be taking a small portion of the hundreds of billions of dollars we receive in tariffs... We're going to use that money to provide $12 billion in economic assistance to American farmers."

The package draws from the Commodity Credit Corporation, with funding offset by tariff revenues, according to administration officials.

It responds to losses from China's boycott of U.S. agricultural products, including soybeans, in retaliation for American tariffs, alongside higher input costs for seeds, fertilizer and equipment.

Soybean farmers anticipate a third straight year of losses in 2025, while overall farm income has dropped 37% since 2022, contributing to increased bankruptcies in states like Iowa.

The aid serves as temporary support until benefits from new trade deals and the One Big Beautiful Bill Act, which boosts reference prices for commodities by 10% to 21%, take effect in October 2026.

Trump described the initiative during the announcement, saying:

“This relief will provide much needed certainty to farmers as they get this year’s harvest to market and look ahead to next year’s crops, and it'll help them continue their efforts to lower food prices for American families.”

Agriculture Secretary Brooke Rollins added:

“The lack of new trade deals under the last Administration turned a trade surplus under Trump into a $50 billion trade deficit, causing our farmers to lose markets and feel acute pain from lower commodity prices. President Trump will not let our farmers be left behind, so he directed our team to build a bridge program to see quick relief while the President’s dozens of new trade deals and new market access take effect.”

The roundtable event included Treasury Secretary Scott Bessent, lawmakers from agricultural states and farmers from Arkansas, Iowa, Indiana, Kansas, Louisiana, Pennsylvania, Ohio and Texas.

A 43-day government shutdown earlier delayed the rollout, which officials had projected could reach up to $15 billion.

This follows $20 billion in similar aid during Trump's first term after Chinese retaliatory actions.