WASHINGTON — President Donald Trump announced Monday that the federal government will distribute $12 billion in one-time payments to farmers facing “unfair market disruption,” calling the plan an economic boost funded by tariff revenues.
At a White House roundtable, Trump framed his trade strategy as helping U.S. agriculture rather than harming it, despite criticism that tariffs have shrunk export markets.
“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,” Trump said.
However, Agriculture Secretary Brooke Rollins later clarified that the funds will come from the Commodity Credit Corporation — a USDA program funded through congressional appropriations — not tariff collections.
Rollins said the administration views the payments as “bridge support,” with funds expected to reach farmers by late February.
$11B DIRECTED TO ROW CROPS
About $11 billion of the funding will go to growers of row crops, including barley, chickpeas, corn, cotton, lentils, oats, peanuts, peas, rice, sorghum, soybeans, wheat, canola, crambe, flax, mustard, rapeseed, safflower, sesame and sunflower, according to the USDA. Another $1 billion is expected to be reserved for specialty crops.
Officials said the payments are intended to carry producers through until provisions in a recently passed Republican tax-and-spending law take effect.
“This bridge is absolutely necessary based on where we are right now,” Rollins said, while blaming the Biden administration for higher costs and stalled trade agreements.
The program caps payments at $155,000 per recipient, USDA Undersecretary Richard Fordyce told reporters.
SUPPORT AND CRITICISM FROM INDUSTRY, DEMOCRATS
Several farmers joined Trump at the announcement, including Iowa producer Cordt Holub, who thanked the administration for the aid.
“It’s Christmas early for farmers,” Holub said.
Louisiana rice farmer Meryl Kennedy echoed the appreciation but emphasized the importance of fair international markets.
“Our farmers can feed this nation and many nations abroad, but we need fair trade, not free trade,” she said.
Democratic lawmakers sharply criticized the plan, arguing that tariffs contributed to the financial strain the payments are meant to relieve.
Rep. Angie Craig of Minnesota, ranking Democrat on the House Agriculture Committee, called the initiative one that “picks winners and losers in the farm economy” and fails to restore export levels.
Senate Minority Leader Chuck Schumer said the relief was needed only because Trump’s trade wars damaged agriculture.
“Now, Donald Trump is patting himself on the back… using taxpayer dollars to clean up the mess he created,” Schumer said.
WILL MORE PAYMENTS FOLLOW?
Asked whether future assistance could follow, Trump said it would depend on trade conditions and suggested farmers prefer a level playing field over aid.
“They don’t want aid. They want to just have a level playing field,” he said.
Still, Rollins told reporters after the event that the administration remains “open to more” if necessary.
