Trump announces $12bn farm aid package to support US farmers hit by trade fallout

US President Donald Trump has unveiled a new $12 billion farm aid package designed to support American farmers suffering from low crop prices and disruptions caused by recent trade policies.

Under the plan, $11 billion will go toward one-time payments for row-crop farmers as part of the government’s “Farmer Bridge Assistance” program, while the remaining $1 billion is reserved for specialty crops not covered by the main program.

The aid package comes amid continuing trade disputes — especially with China — which have disrupted export markets for soybeans, sorghum, cotton, and other key US crops. At a White House event announcing the plan, Trump said helping domestic agriculture is essential to make America more affordable and lower grocery prices.

Also during the event, Trump threatened to impose an additional 5 percent tariff on Mexico, citing water-supply disagreements that he said were harming US farmers.

According to officials, the payments are meant to help farmers manage this year’s harvest and prepare for next year — serving as a financial “bridge” until trade and economic conditions improve. Agriculture Secretary Brooke Rollins noted the $1 billion reserved for specialty crops will be allocated once officials better understand the needs of those growers.

Some farmers welcomed the support as a lifeline. A corn, soybean, and livestock farmer from Indiana said the funds would help him replace tractors and other equipment he had postponed buying. But many expressed concern that government aid, while helpful, would not resolve deeper problems such as high input costs and weakened demand for US agricultural exports.

During an earlier term, Trump had provided larger farm aid packages — including $22 billion in 2019 and $46 billion in 2020 — but critics say persistent issues like supply-cost inflation and lost markets remain largely unaddressed.

Scott Bessent, the US Treasury Secretary, suggested the current package depends on how markets evolve, saying “the farmers don’t want aid — they want a level playing field.” Still, he defended the program as necessary because, in his view, China had used American farmers “as pawns in trade negotiations.”

The announcement follows a recent executive order establishing food-supply-chain security task forces and a review of anticompetitive practices in the agricultural sector — signaling the administration’s broader strategy to stabilize and protect US agriculture.