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Iowan tells Trump new federal aid is Christmas early for farmers
President Trump says the federal government will provide up to $12 billion in one-time payments to farmers being pinched by higher production costs and lower commodity prices.
“The United States will be taking a small portion of the hundreds of billions of dollars we receive in tariffs,” Trump announced Monday. “We are making a lot of money from countries that took advantage of us for years…Our deficits are way down because of tariffs, I guess because of the election because without the election you wouldn’t have tariffs. You’d be sitting here losing your shirt.”
Trump made the announcement during an event at the White House. “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,” Trump said, “and it’ll help them continue their efforts to lower food prices for American families.”
Cordt Holub, a 4th generation farmer who raises corn, soybeans and cattle in Tama County, was at the White House for yesterday’s event and sat next to Trump. “It’s Christmas early for farmers,” Holub said. “…With this bridge payment, we’ll be able to farm another year…It gets in your blood to farm and what you’re doing here in D.C. is working. You have a backbone to stand up to other countries.”
This past weekend Trump issued an executive order calling on the country’s attorney general and the Federal Trade Commission to determine whether there’s price fixing and anti-competitive behavior in the U.S. food supply chain.
The billions in new federal farm support should be distributed by the end of February. U.S. Agriculture Secretary Brooke Rollins said the payments will be based on 2025 acreage reports that eligible farmers file with the USDA by December 19, “so as you are going with your lender, as you are working to ensure and understand what you can plant for next year, you will have that number in hand.”
In September, the Trump Administration first floated the idea of distributing some tariff revenue to row crop farmers. Soybean prices fell dramatically after China quit buying U.S. beans earlier this year in an escalation of the conflict over tariffs. China has since pledged to buy 12 billion metric tons of U.S. soybeans by the end of February, but acquired only a fraction of that amount so far.
Iowa Farm Bureau President Brent Johnson said in a written statement about the announcement. “Farm income is at its lowest point in 15 years, and farmers are facing severe financial stress driven by high input costs and declining crop prices compounded by a lack of global trade opportunities,” he said. “…This package provides critical support while broader trade discussions continue.”
Farmers who raise 20 different crops, including corn, soybeans and oats, will get $11 billion under the “Farmer Bridge Assistance Program.” The USDA will use the remaining billion dollars to help farmers who grow specialty crops and sugarcane.
