Trump Set to Announce $15.5 Billion Aid Package for Farm Sector

WASHINGTON — On the 8th of December, the Trump administration is ready to reveal a sizable farm aid package targeting farmers who are experiencing economic fallout due to the ongoing trade war and low crop prices. The support is going to be one of the biggest federal interventions in the agriculture sector in recent times with a total of approximately $12 billion (S$15.5 billion), as per the information from a White House insider.

The majority of the help will be in the form of up to $11 billion worth of one-time direct payments to the producers of several crops through the Department of Agriculture's new Farmer Bridge Assistance (FBA) program. A spokesperson from the department said that the rest of the money will be used to buy the production of the crops that are not the FBA.

During a rally with the farmers of various sectors, President Donald Trump is going to make the announcement of the package. The agriculture and treasury secretaries- Brooke Rollins and Scott Bessent, respectively- along with other members of the cabinet, will also be there to show the administration's emphasis on the agricultural sector.

The New York Times Reported that This Policy Decision Was a Reflection of President Trump's First-Term Support Initiatives When the US and China Were Engaged in a Trade War. The announcement is made at a time when lawmakers from the president's party are becoming more and more impatient with the situation and are expressing their opinion that farmers are in trouble financially and are urging the administration to take a firm stand as the 2026 midterm elections draw nearer.

The farmers have lost the foreign markets that were the major desolators of their exports, the most significant of which were soybeans, which have been affected the most because of the halt in Chinese purchases that took place towards the end of 2025. The reality of reduced exports has been exacerbated by the decline of federal safety net programs and the increase in the cost of inputs such as fertilizers and seeds.

After a number of agreements, China started to increase its intake of American soybeans. At the end of October, President Trump and Chinese President Xi Jinping signed an agreement through which Chinese buyers commit to ramp up soybean imports. China made its largest single-day purchase of U.S. soybeans in two years in November. The total exports have reached 2.25 million tonnes since October 30, as per the U.S. Department of Agriculture (USDA) reports.

In spite of this improvement, US farmers are still looking forward to more. The U.S. government believes that China is close to realizing its target of purchasing 12 million metric tons of soybeans by the end of February. Treasury Secretary Bessent supports this view.

In 2024, China imported around 20% of the United States' soybeans. The total value of these imports was over $12 billion. That is to say the Chinese market is extremely important for American farmers.

The Farm Service Agency will be in charge of the funds for this newly announced relief plan, which was approved under the Commodity Credit Corporation Charter Act. A few days before the government shutdown which postponed the announcement, President Trump revealed his intention to use the collected tariffs for the benefit of the farmers.

During his first term, Trump dispersed nearly $28 billion in emergency aid to farmers in 2018 and 2019 as a way to reimburse trade war losses with China. However, while the payments provided temporary relief, the conflict still had lasting effects, hence amid the move, China has gradually shifted its soybean demand to Brazil over the years.

The rise in soybean futures lately that traders rope from the hope of better trade relations has not done much for the crop prices that still hover around their lowest levels in three years thus putting farmers' incomes in a tight spot while the costs of production go up.

In March 2024, the USDA unveiled a plan to compensate farmers for losses caused by the drop in commodity prices and rising input costs with up to $10 billion under the Emergency Commodity Assistance Program. More than $9 billion had been paid out as of November 23, mainly through programs for the benefit of corn and soybean producers, as per USDA data.

Trump has also leveled charges against the Biden administration for not being strict enough in the enforcement of the Phase One trade deal which was negotiated during his first term and which includes commitments for soybean purchases. He maintains that the Obama administration is not doing enough to ensure that American farmers have access to foreign markets and that the economy is stable.

As the new aid package is about to be unveiled, people from the food-producing industry are taking a close look at it, hoping that it will relieve their suffering from the economic crisis that has been going on for quite a ​‍​‌‍​‍‌​‍​‌‍​‍‌while.