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 >
US single-family housing starts rebound in November
US single-family housing starts rebound in November
Dec 18, 2024
WASHINGTON (Reuters) - U.S. single-family homebuilding rebounded in November as the drag from hurricanes faded, but the threat of tariffs on imported goods and potential labor shortages from mass deportations could hamper new construction next year. Single-family housing starts, which account for the bulk of homebuilding, jumped 6.4% to a seasonally adjusted annual rate of 1.011 million units last month,...
US current account deficit hits record high in the third quarter
US current account deficit hits record high in the third quarter
Dec 18, 2024
WASHINGTON (Reuters) - The U.S. current account deficit widened to a record high in the third quarter amid a surge in imports and lower primary income receipts. The Commerce Department's Bureau of Economic Analysis said on Wednesday that the current account deficit, which measures the flow of goods, services and investments into and out of the country, increased $35.9 billion,...
All Eyes On December Fed Meeting As Traders Await Interest Rate Projections
All Eyes On December Fed Meeting As Traders Await Interest Rate Projections
Dec 18, 2024
The Federal Reserve is set to wrap up 2024 with its last Federal Open Market Committee (FOMC) meeting on Wednesday, delivering what's expected to be its third consecutive interest rate cut. Policymakers are expected to lower the federal funds rate by 0.25%, bringing it to a target range of 4.25%-4.50%. While the move has been widely anticipated, traders are less...
Latin America, Caribbean economies expected to grow 2.4% in 2025, UN says
Latin America, Caribbean economies expected to grow 2.4% in 2025, UN says
Dec 18, 2024
SANTIAGO (Reuters) - Economies in Latin America and the Caribbean are expected to grow by 2.4% in 2025, driven by domestic consumption but tempered by a risk of worsening global geopolitical and trade tensions, the United Nations said on Wednesday. The UN's Economic Commission for Latin America and the Caribbean (ECLAC) raised the projection from 2.3% in August but said...
Copyright 2023-2026 - www.financetom.com All Rights Reserved