The Trump administration is preparing to distribute up to US$12 billion in aid to U.S. farmers affected by recent trade and tariff policies once the ongoing government shutdown concludes, according to sources familiar with the plan.
The payment will be delivered through a Market Facilitation Program similar to the US$28 billion package provided during the first Trump administration's trade disputes. Senator John Hoeven (R–N.D.) said the program is "all teed up and good to go," but added that "that's being held up by the shutdown."
The aid package is intended to support producers facing lower export volumes and higher costs linked to tariffs and global trade uncertainty. U.S. farmers continue to contend with increased input prices for fertilizer and machinery, inflation, and unstable market conditions as they plan for the next planting season.
Sources said the U.S. Department of Agriculture (USDA) and the Office of Management and Budget had finalized between US$12 billion and US$13 billion in available funding, drawn from internal USDA accounts. Officials have yet to determine the exact allocation of funds once government operations resume.
The funding announcement follows a recent trade truce between the United States and China. Treasury Secretary Scott Bessent said that China has agreed to increase imports of U.S. agricultural products.
The commitments were welcomed by farm organizations and lawmakers from agricultural states, though concerns remain that the relief may not be sufficient to offset earlier losses. Some analysts have warned that many soybean producers have already sold their crops at reduced prices and may not fully benefit from renewed Chinese purchases this season.
Farm groups have called on the administration to both accelerate aid disbursement and expand access to export markets to stabilize long-term demand. While the proposed funding is seen as short-term relief, trade officials have emphasized that longer-term agreements with China and other export destinations will be essential for restoring stability in agricultural exports.
The timeline for releasing the aid remains dependent on the resolution of the federal shutdown. Until then, USDA officials have indicated that administrative and payment systems remain on hold, delaying the program's rollout.
Source: Politico
