Topline
President Donald Trump is considering a massive aid program for U.S. farmers, according to multiple outlets, floating the potentially tariff-funded idea as the agriculture industry navigates low commodity prices and high operating costs amid Trump’s trade war.
More details on the bailout will be revealed by the Trump administration Tuesday. (Photo by Chip Somodevilla/Getty Images)
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Key Facts
The aid package could provide $10 billion or more for U.S. farmers, according to The Wall Street Journal, which cited unnamed people familiar with the discussions who said money could start being distributed in the coming months.
Trump does not have enough money in the Department of Agriculture’s Commodity Credit Corporation fund ($4 billion) to fully fund the bailout, Politico reported, adding Trump officials are evaluating how money made from tariffs could supplement farmer payments.
Official details about the bailout are scarce, though Treasury Secretary Scott Bessent told CNBC that information regarding “substantial support” for farmers would be released Tuesday.
Trump told reporters in the Oval Office on Thursday his administration will provide “some of that tariff money” to farmers, “who are, for a little while, going to be hurt until the tariffs kick into their benefit.”
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What To Watch For
Congress will likely need to vote to authorize the use of tariff funds for the bailout, according to Politico, which noted such a vote would trigger a battle between Democrats and Republicans after the two parties failed to secure a funding bill that could have stopped the government from shutting down Wednesday.
Tangent
Texts seen on Bessent’s phone during a United Nations session last week appeared to show concern over the Trump administration’s decision to provide a $20 billion bailout package for Argentina, which after the announcement of aid began selling soybeans to China. “This gives China more leverage on us,” one of the texts said. China, which purchased $12.6 billion worth of U.S. soybeans last year, has not bought soybeans from the U.S. since May because of retaliatory tariffs.
Big Number
$100 an acre. That is how much U.S. soybean farmers are poised to lose this year, according to data from the Department of Agriculture.
Key Background
Trump used the Department of Agriculture’s Commodity Credit Corporation fund to provide farmers with $28 billion in aid during the trade war with China in his first term. While Trump’s trade war with China has impacted soybeans, the top U.S. agricultural export alongside corn, farmers have also been pressed by inflation and higher operating costs impacting equipment, fertilizer and seeds, according to the American Farm Bureau Federation. Poor credit conditions will likely add to “farm losses and bankruptcies in the days ahead,” the American Farm Bureau Federation added.
Further Reading
Bessent Text Leak: Message Suggests Argentina Bailout Is Backfiring (Forbes)
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