financetom
Economy
financetom
/
Economy
/
Trump bailout for trade-hit US farmers expected this week
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Trump bailout for trade-hit US farmers expected this week
Oct 6, 2025 3:07 PM

WASHINGTON (Reuters) -The Trump administration is expected to announce a plan as soon as Tuesday to bail out U.S. farmers stung by trade disputes and big harvests, with the initial outlay potentially totaling up to $15 billion, according to sources familiar with the matter.

The plan, however, could be difficult to roll out as an ongoing government shutdown prevents the kind of Congressional action needed to approve such a large payout, and existing government reserves fall short, the sources said.

Farmers generally support President Donald Trump but have pressed his administration for trade deals as China continues to spurn U.S. soybean purchases amid tit-for-tat tariffs, and a record corn harvest threatens to sink farmer profits.

Republican lawmakers have warned farmers face "financial calamity" if they do not receive aid by the end of the year. Treasury Secretary Scott Bessent said last week that the White House would announce aid for farmers on Tuesday.

Three sources told Reuters they expected the administration to announce the package this week.

One of those sources said the bailout would total somewhere between $10 billion and $15 billion, and would be a necessary bridge to get farmers through the harvest months and could be followed by additional aid.

The funds would go to soybean farmers affected by the China trade spat, as well as other types of commodity farmers, though the exact details were not yet determined, that source said.

A U.S. Department of Agriculture spokesperson said farmers are benefiting from lower taxes, trade deals and updates to farm programs included in Trump's July tax-cut and spending bill. 

"President Trump has made it clear he will not leave farmers behind, so USDA will continue to assess the farm economy and explore the need for further assistance, however, there is nothing new to share at this time," the spokesperson said.

National Economic Council Director Kevin Hassett on Monday said the White House had held several meetings on farmer aid in the past two weeks.

"We're taking big measures and those big measures are going to be public really, really soon," he said on CNBC. 

SHUTDOWN COMPLICATES AID PLAN    

Trump has said repeatedly that the administration will use tariff income to pay for farmer aid. But such direct payments to farmers are statutorily capped at $350 million, a fraction of the sum being discussed, and can only be adjusted by Congress. 

That adjustment is difficult to achieve while the federal government is shut down, two of the sources said.

Another option is to draw down funds from the Commodity Credit Corporation, a financing mechanism at the USDA that is typically refilled each year in autumn, but has not been refilled because of the shutdown, said Jonathan Coppess, associate professor at the University of Illinois Urbana-Champaign.

During Trump's first term, he used the CCC to pay farmers more than $23 billion in trade aid, about a $3 billion overpayment, according to the Government Accountability Office.

The remaining funds currently in the CCC are likely insufficient to pay for the package being discussed, Coppess said. 

Farmers are already set to receive near-record government payments of more than $40 billion this year, fueled by disaster and economic aid passed by Congress last year.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Super profits of a few pharma cos are prevailing over global good: Piyush Goyal
Super profits of a few pharma cos are prevailing over global good: Piyush Goyal
Jun 13, 2022
Union commerce and industry minister Piyush Goyal on Monday raised various concerns about food security and TRIPS (Trade Related aspects of Intellectual Property Rights) wavier at the WTO Ministerial in Geneva.
These economies have the highest inflation rate in the world; this country tops with 222.30% in 2022
These economies have the highest inflation rate in the world; this country tops with 222.30% in 2022
Jun 8, 2022
Inflation is the rate of increase in the price of goods and services in an economy. According to the International Monetary Fund (IMF), there will be significant inflation pressures around the world in 2022 with developing economies being the worst hit. The IMF had projected inflation to reach 8.7 percent for the year for developing nations. However, it revised the inflation projection upwards by 2.8 percent after Russia’s invasion of Ukraine. Here’s a look at the countries with the highest inflation in 2022-
US becomes India's biggest trading partner in FY22; surpasses China
US becomes India's biggest trading partner in FY22; surpasses China
May 29, 2022
According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at USD 119.42 billion as against USD 80.51 billion in 2020-21. During 2021-22, India's two-way commerce with China aggregated at USD 115.42 billion as compared to USD 86.4 billion in 2020-21, the data showed.
World Bank cuts India’s FY23 growth forecast to 7.5% and warns many countries are staring at a recession
World Bank cuts India’s FY23 growth forecast to 7.5% and warns many countries are staring at a recession
Jun 7, 2022
The global growth rate is estimated to slump from 5.7 percent in FY2021 as the World Bank lowered it to 2.9 percent for the present fiscal year, from the previously estimated 4.1 percent.
Copyright 2023-2025 - www.financetom.com All Rights Reserved