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Trump unveils $12bn aid package for struggling farmers
US President Donald Trump revealed a $12 billion financial support plan on Monday to assist farmers affected by declining crop prices and ongoing trade conflicts. The package includes direct payments and funds for specialty crops, as farmers face mounting pressure from reduced exports and rising production costs.
Breakdown of the aid package
The majority of the funds-$11 billion-will be distributed as one-time payments to producers of row crops through the US Department of Agriculture's Farmer Bridge Assistance program. An additional $1 billion is allocated for crops not covered under the main program, with Agriculture Secretary Brooke Rollins stating these reserves will help assess the needs of specialty crop growers.
Trade disputes and market disruptions
The aid comes as US farmers continue to grapple with the consequences of trade policies, particularly the prolonged dispute with China. Soybean and sorghum producers have been among the hardest hit, as China, the largest importer of these crops, significantly reduced purchases following retaliatory tariffs imposed by the Trump administration.
A White House official noted the payments aim to help farmers market this year's harvest and prepare for the next planting season, serving as a temporary measure until trade policies yield a more favorable market environment.
Farmers react to government support
Reactions from the agricultural community were mixed. Mark Legan, an Indiana farmer growing corn, soybeans, and livestock, told the BBC the aid would provide short-term relief but warned it would not address underlying issues such as high production costs and shrinking export markets.
"The problem is still that we have high costs of production. While some markets have opened up, we're still not back to exporting as much ag products as we have in the past."
Mark Legan, Indiana farmer
Brad Smith, an Illinois farmer attending the state's Farm Bureau convention, acknowledged the necessity of the aid despite reservations. "None of us really love it, but we're not in a position where we can be turning it down," he said. Smith added that any funds he receives would likely be spent within days to settle debts and purchase supplies for the upcoming planting season.
China's soybean purchases fall short of commitments
Following a meeting between Trump and Chinese leader Xi Jinping in October, China pledged to purchase 12 million metric tons of US soybeans by the end of 2025, with plans to increase annual purchases to 25 million metric tons over the next three years. However, China has only acquired about a quarter of the initial target so far.
Treasury Secretary Scott Bessent told CBS that China is expected to meet the 2025 goal by the end of February. He described the farm aid as a necessary bridge, stating, "The Chinese actually used our soybean farmers as pawns in the trade negotiations."
Additional tariffs and long-standing water disputes
Later on Monday, Trump threatened to impose a 5% tariff on Mexico, accusing the country of violating a decades-old water-sharing agreement that grants US farmers access to water from Rio Grande tributaries. The president described the situation as "very unfair" to American farmers in a social media post.
The administration also announced an executive order on Saturday to establish task forces focused on food supply chain security and addressing anti-competitive practices in the agricultural sector.
Political context and public sentiment
The aid package arrives as polls indicate growing public concern over rising costs, an issue Trump has previously dismissed as a "hoax" perpetrated by Democrats. While the president framed the support as part of a broader effort to "make America affordable again," critics argue the measures are a temporary fix rather than a long-term solution to the challenges facing the agricultural sector.
