WASHINGTON

The Trump administration on Monday unveiled a $12 billion support package intended to ease financial pressure on farmers facing low commodity prices, high input costs, and trade disruptions amid controversial global tariffs championed by the president.

The package is designed to provide temporary liquidity until new long-term legislation comes into force.

US President Donald Trump met with Agriculture Secretary Brooke Rollins, Treasury Secretary Scott Bessent, members of congress, and farmers from across the country at a roundtable meeting at the White House on Monday to announce the relief package.

Trump said the assistance represents only a small portion of the US’ tariff revenues.

Soybean, corn, wheat, rice, and cotton growers to benefit most

The one-time payment aims to help farmers cope with temporary trade disruptions and rising production costs until Trump’s “One Big Beautiful Bill Act,” as it was officially called, comes into effect.

Out of the total, $11 billion will provide broad-based support for producers of barley, chickpeas, corn, cotton, lentils, oats, peanuts, peas, rice, sorghum, soybeans, wheat, canola, crambe, flax, mustard, rapeseed, safflower, sesame, and sunflower, the Agriculture Department said Monday.

The support seeks to offset market losses stemming from trade disruptions, high input costs, persistent inflation, and unfair trade practices by competitors.

Payments will be based on cultivated land size, production costs, and other factors. Eligible farmers will receive payments through Feb. 28, while product-specific rates will be announced at the end of the month.

The remaining $1 billion will be allocated to products not covered under the Farmer Bridge Assistance program, such as specialty products and sugar. Details are still being worked out as market impact and economic needs are evaluated.

Trump administration blames Biden for farmers’ issues

Bessent, speaking at the roundtable meeting, said direct payments would provide producers with the breathing room needed to market this year’s harvest and plan the next session, as these payments would serve as a liquidity bridge until farmers benefit from trade agreements and other policies.

Rollins blamed the administration of former President Joe Biden for the problems farmers are facing now, saying its failure to make new trade agreements turned the trade surplus from Trump’s first term into a deficit.

US agricultural products ran a trade deficit of $36.5 billion last year, and $36.3 billion from January to August this year, according to the Agriculture Department.

Farm bankruptcies rise

The US agricultural sector was already struggling before Trump took office, and the tariffs further exacerbated the challenges the sector was facing.

Tariffs undermined foreign demand and brought trade disruptions, such as China halting soybean purchases amid rising trade tensions, leading to losses for the sector.

Falling prices and rising input costs also squeezed profit margins.

These developments have led to an increase in farm bankruptcies. In all of last year, 216 farms filed for bankruptcy, while 88 did so in the first quarter and 93 in the second quarter of this year, according to US court data.

There are also questions about whether the bailout money will go to the farmers who need it most. According to The New York Times, “Independent analyses found that the payments the Trump administration made to farmers in the first term disproportionately went to larger and wealthier farms.’

High cattle prices and large government payments are expected to boost the net income of farms despite the low prices for many products, according to a report by the University of Missouri Food and Agricultural Policy Research Institute.