Farmers have been dogged by trade wars that have seen reduced purchases and increased prices on seeds and fertiliser.
Published On 8 Dec 2025
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United States President Donald Trump has announced a $12bn aid package to help farmers harmed by his hardline tariff policies.
Trump announced the package at a White House event on Monday, saying the money would come from funds raised by tariffs.
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“What we’re doing is we’re is taking a relatively small portion of that, and we’re going to be giving and providing it to the farmers in economic assistance,” Trump said.
Since taking office, Trump has used emergency powers to pursue a sweeping tariff agenda, including imposing reciprocal tariffs on nearly all US trade and escalating a trade war with China.
While Washington and Beijing have since begun to de-escalate some of their tensions, the tit-for-tat has spelt a challenging year for farmers.
Despite record harvests in the US, China has increasingly turned to South America for agricultural products, notably soya beans and sorghum. They have also faced higher seed and fertiliser prices as a knock-on effect of the tariffs.
The Trump administration has been acutely aware of the impact, given Trump’s staunch support among many farmers during the 2024 election.
Trump referenced that support on Monday, saying, “We love our farmers.”
“And as you know, the farmers like me … because based on, based on voting trends, you could call it voting trends or anything else,” he said.
Before the White House event, a Trump administration official said up to $11bn in the new aid would go to the newly created Farmer Bridge Assistance, a programme for row crop farmers hurt by trade disputes and higher costs.
It was still being determined where the other $1bn would be allocated, the official said.
The Food and Agricultural Policy Research Institute at the University of Missouri has estimated that net farm income could fall by more than $30bn in 2026 due to a decline in government payments and low crop prices.
Soya bean farmers, meanwhile, are expected to see their third consecutive year of losses in 2025, according to the American Soybean Association, a decline that preceded Trump’s tariffs.
The Trump administration has sought to paint a rosier picture, pointing to an agreement between Trump and Chinese President Xi Jinping for Beijing to buy 12 million metric tonnes of US soya beans by the end of the calendar year. Beijing also agreed to buy 25 million metric tonnes per year for the next three years.
While China has since purchased only a fraction of its promised total in 2025, White House officials have said it is on track to meet the target.
US farmers typically receive billions of dollars in federal subsidies each year.
All told, farmers were set to receive a near-record $40bn in government payments this year, fuelled by an array of disaster relief funding and economic aid.
