United States President Donald Trump on Monday announced a $12 billion relief package for American farmers, a move designed to mitigate the financial damage inflicted on the crucial agricultural sector by the administration’s escalating global trade disputes, particularly with China.
The announcement, made during a roundtable event at the White House, seeks to provide financial certainty to farmers facing falling crop prices and soaring costs due to retaliatory tariffs imposed by major trade partners.
The aid package will channel funds derived from tariff revenues through the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation. Agriculture Secretary Brooke Rollins stated that up to $11 billion is immediately earmarked for one-time payments to row-crop producers, with the remaining $1 billion reserved for specialty crops as details are finalized. The initial payments are expected to reach growers by the end of February.
President Trump framed the initiative as necessary protection for a key American industry.
”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 said at the event. He added, regarding the calculation of the package’s size, “We looked at how they were hurt, to what extent they were hurt.”
Treasury Secretary Scott Bessent characterized the funds as a “liquidity bridge during a period of adjustment,” intended to support the agricultural base until the full benefits of new trade deals are realized.
The aid, however, comes amid continued concerns from growers who prefer stable market access over government subsidies. Speaking at the roundtable, Iowa farmer Cordt Holub underscored the necessity of the immediate assistance: “With this bridge payment, we’ll be able to farm another year.”
Payments will be calculated based on factors like production costs and acres planted for crops including corn, soybeans, rice, and wheat. Eligibility for the full payment is capped at $155,000 per farm and excludes entities earning over $900,000 annually.
