President Donald Trump announced on Monday that farmers will receive $12 billion to help offset the problems caused by his tariffs.
At the White House, Trump said the money will come from tariff revenue. He added that only a small portion will be used to help farmers and emphasized his support for them.
The tariffs have led to trade disputes, especially with China. As a result, demand for U.S. crops like soybeans and sorghum has dropped since China is now buying from South America. Farmers are also facing higher costs for seeds and fertilizer.
Roughly $11 billion will fund a new Farmer Bridge Assistance program to support crop producers dealing with trade problems and higher costs. The use of the remaining $1 billion has not been decided yet.
Despite strong harvests, the American Soybean Association says soybean farmers may lose money for a third straight year in 2025, even before the latest tariffs. The University of Missouri predicts farm income could fall by more than $30 billion in 2026 due to lower prices and reduced government support.
The administration noted that China is expected to buy 12 million metric tons of U.S. soybeans by year’s end and 25 million tons annually for the next three years, but China has not yet reached these targets.
Farmers already receive significant government aid each year. This year, the total was nearly a record $40 billion due to disaster relief and previous assistance. Trump also said that farmers supported him in the 2024 election and that trends show they continue to back him.
