WASHINGTON (AP/KMJ) — President Trump announced a $12 billion farm aid package on Monday — a boost to farmers who have struggled to sell their crops while getting hit by rising costs after the president raised tariffs in China as part of a broader trade war.
He unveiled the plan Monday afternoon at a White House roundtable with Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, lawmakers and farmers who raise cattle and grow corn, cotton, sorghum, soybeans, rice, wheat, and potatoes.
“$12 billion is a lot of money,” Trump said, adding that the additional aid will help provide certainty for farmers. The money is coming from tariff revenue, he said.
Rollins said that $11 billion is being announced on Monday, while another $1 billion is being held back for specialty crops as the administration works to better understand the circumstances for those farmers. The aid will move by the end of next February, Rollins said.
Of the $12 billion provided, up to $11 billion will be used for the Farmer Bridge Assistance (FBA) Program, which provides broad relief to United States row crop farmers who produce Barley, Chickpeas, Corn, Cotton, Lentils, Oats, Peanuts, Peas, Rice, Sorghum, Soybeans, Wheat, Canola, Crambe, Flax, Mustard, Rapeseed, Safflower, Sesame, and Sunflower. FBA will help address market disruptions, elevated input costs, persistent inflation, and market losses from foreign competitors engaging in unfair trade practices that impede exports. The FBA Program applies simple, proportional support to producers using a uniform formula to cover a portion of modeled losses during the 2025 crop year. This national loss average is based on FSA reported planted acres, Economic Research Service cost of production estimates, World Agricultural Supply and Demand Estimates yields and prices and economic modeling.
Farmers who qualify for the FBA Program can expect payments to be released by February 28, 2026. Eligible farmers should ensure their 2025 acreage reporting is factual and accurate by 5pm ET on December 19, 2025. Commodity-specific payment rates will be released by the end of the month. Crop insurance linkage will not be required for the FBA Program; however, USDA strongly urges producers to take advantage of the new OBBBA risk management tools to best protect against price risk and volatility in the future.
The remaining $1 billion of the $12 billion in bridge payments will be reserved for commodities not covered in the FBA Program such as specialty crops and sugar, for example, though details including timelines for those payments are still under development and require additional understanding of market impacts and economic needs.
“We looked at how they were hurt, to what extent they were hurt,” Trump said in explaining how the administration came up with the size of the package. “We figured out a very exact number, and it was about $12 billion.”
Farmers have backed Trump politically, but his aggressive trade policies and frequently changing tariff rates have come under increasing scrutiny because of the impact on the agricultural sector and because of broader consumer worries.
