Trump unveils $12 billion farm aid as he threatens new Mexico tariffs, presses China on soybeans
WASHINGTON — President Donald Trump on Monday announced a $12 billion aid package for U.S. farmers hammered by low prices and trade disputes, pairing fresh relief with a new tariff threat against Mexico and fresh pressure on China to accelerate soybean purchases.
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The White House said $11 billion will flow as one-time direct payments to row-crop producers through the Agriculture Department’s Farmer Bridge Assistance Program. Another $1 billion will be reserved to support crops not covered by the program, including so-called specialty crops, as officials assess needs across the sector.
“Maximising domestic farm production is a big part of how we will make America affordable again and bring down grocery prices,” Trump said at a White House event alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. Members of Congress and farmers representing corn, cotton, sorghum, soybeans, rice, cattle, wheat and potatoes attended.
A White House official said payments are designed to help farmers market this year’s harvest, plan next season and act as a bridge “until the administration’s policies deliver a better market environment.” Rollins said the $1 billion set-aside will help the department evaluate conditions for specialty crops and ensure “every forward moving position that we need.”
Asked if more farm aid could follow, Trump said “it depends” on market conditions. “The farmers don’t want aid,” he added. “They want to have a level playing field.”
The announcement arrives amid sustained concerns over rising grocery costs and years of turbulence for agriculture stemming from tariff battles, particularly with China. U.S. sorghum and soybean growers — long reliant on Chinese demand — have been among the hardest hit. China, the world’s largest soybean market, effectively shut the door to U.S. shipments for months this year after the administration levied new duties on Chinese goods.
Following Trump’s October meeting with Chinese leader Xi Jinping in South Korea, the White House said Beijing committed to buy at least 12 million metric tons of U.S. soybeans by the end of 2025, followed by 25 million metric tons annually for three years. To date, China has purchased roughly a quarter of the 2025 target, though Bessent told CBS that China is likely to meet the goal by the end of February. “The Chinese actually used our soybean farmers as pawns in the trade negotiations,” he said. “We are going to create this bridge because… agriculture is all about the future. You’ve got to start financing for planning next year when things will be very good.”
Later Monday, Trump threatened a new 5% tariff on Mexico, accusing it of violating a decades-old agreement that supplies U.S. farmers with water from Rio Grande tributaries. “It is very unfair to our US Farmers who deserve this much needed water,” he posted on social media. The two countries have sparred for years over compliance with the 1940s-era treaty.
On the ground, farmers described the aid as welcome but insufficient to fix structural strains. “It will help our bottom line,” said Mark Legan, who raises livestock and grows corn and soybeans in Putnam County, Indiana. “The problem is still that we have high costs of production,” he said, citing record prices for crop-protection chemicals and seeds. While some export markets have reopened, “we’re still not back to exporting as much ag products as we have in the past.”
Brad Smith, an Illinois farmer who learned of the package at the state Farm Bureau convention in Chicago, said, “None of us really love it, but we’re not in a position where we can be turning it down. We hope we can reduce the need for anything like this going forward.” He said any funds he receives will likely be spent within days to clear bills and secure seed, chemicals and fertilizer for next year. Smith added that directing aid to the most stressed producers — rather than disproportionately to the largest operations — has been a recurring challenge.
Trump also signed an executive order Saturday creating food supply chain security task forces and directing a review of potential anti-competitive behavior in the agricultural sector.
The latest relief follows earlier rounds during Trump’s first term, including $22 billion in 2019 and $46 billion in 2020 that also addressed Covid-19 disruptions. Whether more aid is forthcoming will depend on commodity prices, global demand and the outcome of ongoing trade frictions, the administration said.
By Ali Musa
Axadle Times international–Monitoring.
