US President Donald Trump announced a $12 billion bailout package for struggling farmers on Monday, offering relief from the financial hit caused by his trade war with China. The rescue plan includes an initial $11 billion payment and a potential additional $1 billion to support fruit and vegetable growers.
The aid comes as China boycotted American farm products in retaliation for US tariffs, hurting many US farmers who rely on export markets. Most of the relief funds will go towards producers of corn, cotton, sorghum, soybeans, rice, wheat, and other row crops. The payments are expected to be made by the end of February.
While Mr. Trump’s trade policies aim to spur domestic production, they have closed off sales for many US farmers. China’s boycott has resulted in a significant decline in US farm exports. “We love our farmers,” said President Trump at the White House event announcing the payments. “And as you know, the farmers like me.”
However, some experts estimate that the total payout could be far less than the recent losses suffered by farmers. The $12 billion bailout covers only a third of farmers’ losses, according to estimates.
The move comes amid growing concerns about the financial health of US farmers, who are facing higher input costs, rising interest rates on production loans, and lower crop prices on the global market. A senior research economist at North Dakota State University estimated that crop producers could lose between $35 billion and $43 billion due to the trade war.
Democrats argue that the one-time payment is not a long-term fix for farmers who want more certainty in their markets. They advocate for President Trump to end his tariff taxes, which they claim have led to China’s boycott of US farm products.
Source: https://www.nytimes.com/2025/12/08/us/politics/trump-farmers-aid-bailout.html