In a move aimed at shoring up support among American farmers battered by a prolonged trade conflict with China, President Donald Trump on December 9, 2025, unveiled a $12 billion federal aid package at the White House. The announcement, which brought together Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, lawmakers, and farmers, comes as the agricultural sector struggles with the fallout from tariffs, falling crop prices, and shifting global markets.
The new aid program, dubbed the Farmer Bridge Assistance program, is designed to provide immediate relief to crop producers facing tightening margins and mounting uncertainty. According to AP, approximately $11 billion will be distributed as one-time payments to crop producers, while $1 billion is reserved for specialty crop producers. Payments are set to begin rolling out in the coming weeks and must be distributed by February 28, 2026, as detailed by Rollins during the event.
"This relief will provide much-needed certainty to farmers as they get this year’s harvest to market and look ahead to next year’s crops," President Trump said, emphasizing that the support is also intended to ease food costs for consumers. He was quick to point out that the program is funded through tariff revenue, stating, "This money would not be possible without tariffs."
The backdrop to this announcement is a tense trade relationship with China, historically the largest buyer of American soybeans. In May, Beijing dramatically increased tariffs on U.S. farm products in retaliation for tariffs imposed by the Trump administration on Chinese goods, leading to a sharp decline in American soybean exports. As AP reported, China’s move forced U.S. farmers into a difficult position, with many seeing their main export market evaporate almost overnight.
Treasury Secretary Scott Bessent, who has played a key role in trade negotiations, has repeatedly expressed his solidarity with farmers. In October, Bessent told ABC News, "I’m actually a soybean farmer," highlighting his personal stake in the crisis. However, in a recent appearance on CBS’s Face the Nation, Bessent revealed he had divested his holdings in North Dakota soybean farmland as part of his ethics agreement. "I actually just divested it this week as part of my ethics agreement, so I’m out of that business," he stated, a move confirmed by a compliance certification filing on the U.S. Office of Government Ethics website dated December 5, 2025.
Bessent’s financial ties to soybean farming had drawn scrutiny, given his leadership role in the administration’s trade talks. Still, he maintained, "I have felt this pain too," underscoring the widespread impact of the trade war on the agricultural community. A Treasury representative did not respond to requests for further comment, according to AP.
The need for federal assistance became acute after U.S. soybean sales to China plummeted, leaving farmers with unsold crops and falling prices. According to Reuters, China resumed limited purchases of American soybeans under a preliminary trade understanding reached in October 2025, with at least 840,000 metric tons purchased for delivery in December and January. The White House previously indicated that this agreement would result in at least 12 million metric tons of U.S. soybean purchases in the last two months of 2025, but analysts have cautioned that imports may not reach normal levels.
Despite these challenges, Bessent noted some positive momentum. He stated that U.S. soybean prices have risen as much as 15% since the October agreement and described China’s buying as occurring in a "perfect cadence." Still, many farmers continue to face significant financial strain, grappling with low crop prices, high input costs, and uncertainty about future market access.
The administration’s efforts to provide relief were not without delays. Initial discussions about farm aid began as early as October 2025, but progress was stalled by a 43-day government shutdown. The eventual $12 billion package is seen as a lifeline for many in the agricultural sector, though some growers remain skeptical about its long-term impact.
During a White House roundtable on December 8, President Trump recounted an October 30 meeting with Chinese President Xi Jinping in Busan, South Korea. In a bid to promote U.S. agricultural exports, Trump boasted to Xi that American soybeans are "more nutritious than competitors." Xi, reportedly unimpressed, asked, "Is that a Trump statement or real?" Trump admitted, "Really? I had never heard of it," highlighting the skepticism with which such claims are sometimes met.
Trump also revealed that China had committed to purchasing more than $40 billion worth of soybeans and expressed optimism that Xi would exceed that figure. The renewed engagement between the two countries came after Trump agreed to cut tariffs on Chinese imports by 10%, reducing them from 57% to 47%, following Beijing’s cooperation with Washington on the ongoing fentanyl crisis. As a result, China has bolstered its soybean purchases, providing a much-needed boost to U.S. farmers.
Yet, the broader economic context remains fraught. Trump’s farm aid announcement came amid mounting dissatisfaction with his administration’s economic policies, particularly over tariffs and the rising cost of living. On December 9, Trump acknowledged an affordability "problem"—a notable shift after weeks of dismissing such concerns as a "hoax" and a "con job" by rival Democrats. "The Democrats caused the affordability problem and we’re fixing it," he said, signaling a softening of rhetoric as public pressure mounted.
Agriculture Secretary Brooke Rollins sought to reassure farmers that the administration’s approach is creating new market opportunities, even as she acknowledged the sector is still recovering from the "Biden years." Rollins emphasized that $1 billion of the aid package would be held back to ensure specialty crop producers are not left behind.
Alongside the aid announcement, Trump pledged to ease environmental regulations for agricultural machinery manufacturers, arguing that federal rules "don’t do a damn thing except make it complicated." He warned companies to lower equipment prices once those restrictions are lifted, aiming to further support farmers facing high operating costs.
Some U.S. farmers have expressed concern about Treasury’s $20 billion currency swap agreement with Argentina, fearing it gives foreign competitors an edge. Bessent later stated that the Treasury made a profit on the swaps, but this has done little to reassure growers awaiting federal support.
As the new aid program rolls out, the White House maintains that it is designed to stabilize farmers until markets recover more fully. China’s renewed engagement with U.S. agriculture, while welcome, remains tentative, with Beijing still sourcing from suppliers in Argentina and Brazil. The coming months will test whether the administration’s efforts can truly restore confidence and prosperity to America’s heartland.
For now, farmers across the country are watching closely, hoping that this latest round of support will help them weather the ongoing storm and keep their livelihoods afloat.
