In brief
President Donald Trump has unveiled a $12 billion aid package to assist U.S. farmers impacted by low crop prices and trade wars. Most of the funding, $11 billion, will be provided as one-time payments for row crops, as part of the Farmer Bridge Assistance program. Farmers have expressed support but also concerns about the ongoing challenges in the agriculture sector. Trump's announcement coincided with market anxieties due to trade disputes, particularly with China.
U.S. President Donald Trump has unveiled a $12 billion (£9 billion) farm aid package aimed at helping farmers impacted by low crop prices and the administration's ongoing trade wars.
Most of the money – $11 billion – is earmarked for one-time payments to farmers for row crops as part of the agriculture department's Farmer Bridge Assistance program, with another billion reserved for crops not covered by the program.
While farmers have broadly supported Trump, the agriculture sector has been disrupted by trade disputes during his second term, particularly with China.
Also on Monday, Trump threatened to hit Mexico with an additional 5% tariff in a row over water supplies to U.S. farmers.
The White House says the aid package will help farmers suffering from 'years of unjustified trade actions' and accumulated inflation.
Trump made the announcement during an event at the White House, alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. Members of Congress and corn, cotton, sorghum, soybean, rice, cattle, wheat, and potato farmers were also in attendance.
'Maximizing domestic farm production is a big part of how we will make America affordable again and bring down grocery prices,' Trump said.
Sorghum and soybean farmers have been hit hard by the Trump administration's trade dispute with China, the greatest importer of their crops.
According to a White House official, the payments are intended to help farmers market this year's harvest and plan for next year's crops, as well as act as a bridge until the administration's policies 'deliver a better market environment'.
Trump was also referring to a more than 80-year-old treaty that grants the U.S. water from Rio Grande tributaries, stating, 'It is very unfair to our U.S. farmers who deserve this much-needed water.'
Mark Legan, a livestock, corn, and soybean farmer in Putnam County, Indiana, expressed that the government aid would be helpful in replacing essential equipment, while also noting that persistent cost pressures remain a concern.
During his first administration, Trump had also provided aid packages to farmers, including significant sums during the 2019 trade disputes and in 2020 due to the Covid pandemic.
The announcement comes as polls indicate increasing American concerns about rising costs, especially amid trade policies that have affected access to foreign markets.
There are hopes that with the new aid, farmers can stabilize their operations and continue planning for the future amidst ongoing challenges.
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