President Donald Trump on Monday unveiled a $12 billion plan to provide economic assistance to American farmers hurt by tariffs and inflation.
Trump announced the proposal during a roundtable with the farming community at the White House, along with Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins.
"I'm delighted to announce this afternoon that the United States will be taking a small portion of the hundreds of billions of dollars we receive in tariffs, "Trump said. "We're going to use that money to provide $12 billion in economic assistance to American farmers."
The president explained the need to help farmers, describing them as the "backbone" of the country.
"This relief will provide much-needed certainty to farmers as they get this year's harvest to market and look ahead to next year's crops. And it will help them to continue their efforts to lower food prices for American families," Trump added.
Rollins said one-time payment plan will be given to farmers with row crops, with $11 billion allocated under the USDA's Farmer Bridge Assistance program.
The other $ 1 billion will be held back for farmers who grow specialty crops not covered under that bridge program, according to Rollins.
Farmers have struggled to sell their crops due to rising costs after the president raised tariffs on China as part of a broader trade war. Soybean farmers have been hit especially hard by Trump’s trade war with China, which is the world’s largest buyer of soybeans.
Beijing had pledged to purchase at least 12 million metric tons of U.S. soybeans by the end of the calendar year, plus 25 million metric tons a year in each of the next three years.
Since Trump announced the agreement at the end of October, China has purchased more than 2.8 million metric tons of soybeans, according to Bessent.
The Treasury Secretary explained during the roundtable that the one-time payment serves as a "liquidity bridge during a period of adjustment" for farmers.
"These direct payments will give producers the breathing room they need to market this year’s harvest and plan for next season," Bessent said, adding that the input costs of fuel and fertilizer are easing due to Trump's pro-growth policies.
Farmers expressed gratitude for the payment from the Trump administration.
But they also pointed out that they ultimately want to make a profit from their livelihood, not just survive on the government's help.
“That’s a start, but I think we need to be looking for some avenues to find other funding opportunities and we need to get our markets going," according to Caleb Ragland, the Kentucky farmer who serves as president of the American Soybean Association. "That’s where we want to be able to make a living from."