President Trump announced the initiation of a $12 billion agricultural relief plan in early December last year. The federal government has now released the details of the plan, allowing farmers to calculate the amount of assistance they may receive.
The US Department of Agriculture (USDA) announced on Wednesday, December 31st, that they will distribute a one-time total of $11 billion in assistance to eligible farmers through the Farmer Bridge Assistance Program (FBAP), with the remaining $1 billion reserved for specialty crops and the sugar industry.
The $11 billion will be distributed based on the actual planting area of farmers in 2025, covering 19 major crops including soybeans, corn, wheat, rice, and cotton. Rice, cotton, and oats will receive the highest per-acre subsidies at $132.89, $117.35, and $81.75 respectively, while corn will receive $44.36, wheat $39.35, and soybeans $30.88.
US Agriculture Secretary Brooke Rollins stated that eligible farmers can expect to receive the assistance by February 28th at the latest. As for the $1 billion allocated for specialty crops and the sugar industry, the distribution methods and timeline are still being planned and will depend on economic needs and market impacts.
Rollins described the one-time assistance as a way to provide transitional support to farmers, helping them maintain production and operations while the government continues to explore new markets and strengthen agricultural safety nets. She emphasized that the USDA is working to streamline the application process, allowing producers to focus on their work and ensure the nation’s food and energy supply.
President Trump announced this plan during a roundtable meeting at the White House on December 8th with representatives from the agriculture sector. The background is the continued pressure on the US agriculture industry due to the dual pressures of trade tensions with China and oversupply in the global food market.
Since the beginning of last year, China has significantly reduced its purchases of US soybeans, turning to markets in South America, among others, leading to major uncertainties for US farmers faced with falling prices and inventory pressures. Despite the later announcement by the Trump administration of a three-year agreement with China to increase imports of US soybeans, market recovery will still take time.
However, some farmers and industry groups have expressed reservations about the effectiveness of the assistance. Scott Metzger, Chairman of the American Soybean Association and a farmer from Ohio, told Reuters that the subsidy levels for soybeans may not be enough to offset the significant losses due to trade and price declines, potentially not sufficient to support farmers in maintaining financial stability.
Richard Fordyce, Deputy Under Secretary for Farm Production and Conservation at the USDA, also admitted that the current assistance, limited by funding, may not fully stabilize the agricultural economy. However, he did not rule out the possibility of providing more support in the future, stating that the government will continue to monitor the market in the coming months.
“At this stage, we believe we have made the best efforts,” Fordyce said in an interview. “The situation next year remains unpredictable, but all feasible measures have been implemented at present.”