US President Donald Trump has unveiled a $12 billion (£9 billion) farm aid package aimed at helping farmers impacted by low crop prices and the administration's ongoing trade wars. Most of the money – $11 billion – is earmarked for one-time payments to farmers for row crops as part of the agriculture department's Farmer Bridge Assistance programme, with another billion reserved for crops not covered by the programme.
While farmers have broadly supported Trump, the agriculture sector has been disrupted by trade disputes during his second term, particularly with China. Also on Monday, Trump threatened to hit Mexico with an additional 5% tariff in a row over water supplies to US farmers.
The White House says the aid package will help farmers suffering from 'years of unjustified trade actions' and accumulated inflation. Trump made the announcement during an event at the White House, alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. Members of Congress and corn, cotton, sorghum, soybean, rice, cattle, wheat and potato farmers were also in attendance.
Maximising domestic farm production is a big part of how we will make America affordable again and bring down grocery prices, Trump said. Sorghum and soybean farmers have been hit hard by the Trump administration's trade dispute with China, the greatest importer of their crops.
According to a White House official, the payments are intended to help farmers market this year's harvest and plan for next year's crops, as well as act as a bridge until the administration's policies 'deliver a better market environment'. Rollins said the last $1 billion would be held back to help officials understand the state of 'specialty crops' and ensure that the government is 'making every forward moving position that we need to'.
When asked if further farm aid packages were planned, Trump said 'it depends' on how the market develops. 'The farmers don't want aid,' he said. 'They want to have a level playing field.'
The announcement comes as polls suggest Americans are increasingly concerned about rising costs - an issue which Trump has at times characterised as a 'hoax' and a 'con job' perpetrated by Democrats. It also followed complaints from US farmers after they lost access to customers in China as a result of Trump's trade policies.
Later on Monday, Trump threatened to impose a new 5% tariff on Mexico, accusing it of violating an agreement that gives American farmers access to water, referring to a more than 80-year-old treaty that grants the US water from Rio Grande tributaries. Farmers, assessing the recent package, expressed relief but also uncertainty, stating that the aid would help but not resolve deeper issues such as high production costs and lost markets.
While farmers have broadly supported Trump, the agriculture sector has been disrupted by trade disputes during his second term, particularly with China. Also on Monday, Trump threatened to hit Mexico with an additional 5% tariff in a row over water supplies to US farmers.
The White House says the aid package will help farmers suffering from 'years of unjustified trade actions' and accumulated inflation. Trump made the announcement during an event at the White House, alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. Members of Congress and corn, cotton, sorghum, soybean, rice, cattle, wheat and potato farmers were also in attendance.
Maximising domestic farm production is a big part of how we will make America affordable again and bring down grocery prices, Trump said. Sorghum and soybean farmers have been hit hard by the Trump administration's trade dispute with China, the greatest importer of their crops.
According to a White House official, the payments are intended to help farmers market this year's harvest and plan for next year's crops, as well as act as a bridge until the administration's policies 'deliver a better market environment'. Rollins said the last $1 billion would be held back to help officials understand the state of 'specialty crops' and ensure that the government is 'making every forward moving position that we need to'.
When asked if further farm aid packages were planned, Trump said 'it depends' on how the market develops. 'The farmers don't want aid,' he said. 'They want to have a level playing field.'
The announcement comes as polls suggest Americans are increasingly concerned about rising costs - an issue which Trump has at times characterised as a 'hoax' and a 'con job' perpetrated by Democrats. It also followed complaints from US farmers after they lost access to customers in China as a result of Trump's trade policies.
Later on Monday, Trump threatened to impose a new 5% tariff on Mexico, accusing it of violating an agreement that gives American farmers access to water, referring to a more than 80-year-old treaty that grants the US water from Rio Grande tributaries. Farmers, assessing the recent package, expressed relief but also uncertainty, stating that the aid would help but not resolve deeper issues such as high production costs and lost markets.
