President Trump announces $12 billion aid package for farmers impacted by his tariff policies
Tariffs imposed by U.S. President Donald Trump have had a ripple effect across the globe, and farmers within America are among those hit worst by the fallout. In the face of rising criticism over the policy, he has announced a $12 billion bailout package to farmers who have suffered losses due to the trade war between the U.S. and its economic partners. The president stated that the aid will be funded by the tariff revenue, and the administration will start rolling out the payments for the next crop season. The package will provide $11 billion in one-time payments to crop farmers through a new U.S. Department of Agriculture payment program, called the Farmer Bridge Assistance (FBA) program. The remaining $1 billion will be reserved for the special crops not covered by the program.
"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... and we're going to be giving and providing it to the farmers in economic assistance. And we love our farmers," the president said, while surrounded by Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, the members of Congress, and farmers.
The FBA is meant to help the farmers “recover from years of unjustified trade actions on American agricultural goods by foreign governments, accumulated inflation costs under the previous administration and other market disruptions,” a White House official said, according to the New York Post. As per the USDA's press release, the $11 billion one-time payments will be made to crop farmers who produce Soybeans, Wheat, Barley, Corn, Oats, Lentils, Peanuts, Rice, Peas, and other crops covered by the FBA program.
Farmers who are eligible for the aid can expect to get the payments by February 28, 2026, given that they ensure their 2025 acreage reporting is factual and accurate by December 19, 2025. The remaining $1 billion is reserved for the specialty crops and sugar, for instance. "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," Trump added during the announcement.
According to the American Farm Bureau Federation, farmers are expected to be $28 million in the red for the 2025-26 crop year, up from the $17 million mark the previous year. Furthermore, chapter 12 farm bankruptcies went up to 60% in the first six months of the year, compared to last year, The Wall Street Journal reported.
The U.S.-China trade war has been detrimental for soybean farmers as China blocked all purchases during the bumper harvest season, after the president threatened to impose 100% additional import duties on Chinese goods. However, after a meeting with Chinese President Xi in October, Trump said the tariffs will be lowered to 47% and under a framework trade agreement deal, China agreed to purchase 12 million metric tons of soybeans in the last two months od the year, and 25 million metric tons in the coming two year, to get on par with trade levels before the war, New York Post reported.
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