TL;DR: President Donald Trump announced that tariff revenue will be used to support American farmers, especially soybean producers, hurt by trade disputes. The aid program is pending congressional approval and could roll out by early 2026.
What Happened
- President Trump stated on September 25 and October 1, 2025, that tariff revenue will be used to provide temporary financial aid to U.S. farmers hurt by trade conflicts.
- "We're going to take some of that tariff money and give it to our farmers," Trump said at the White House.
- The aid is intended to bridge the gap until tariffs begin to benefit farmers directly; Trump said farmers are "for a little while going to be hurt, until it kicks in."
- Trump emphasized soybean farmers as a primary concern, citing China’s reduction in soybean purchases as part of trade negotiations.
Policy Details
- The program will be modeled after the 2018–2019 Market Facilitation Program, which paid out $28 billion to offset trade war losses.
- The aid will likely be included in an omnibus spending bill expected by November 21, 2025, with rollout targeted for late 2025 or early 2026.
- Agriculture Secretary Brooke Rollins said the administration is evaluating legal channels to use tariff revenue, possibly under Section 32 authority.
Economic Context
- The U.S. farm economy is struggling due to:
- Low crop prices (corn at $4.50/bushel, wheat at $5.20/bushel).
- High input costs, with fuel and fertilizer up 20-30%.
- Soybean exports to China have dropped from $12B in 2020 to $6B in 2025.
- Analysts estimate $10–15 billion may be allocated based on tariff revenues.
Political and Public Reaction
- Support: Republicans and farm groups support the plan as needed relief.
- Criticism: Democrats called it a temporary “band-aid” and questioned long-term trade strategy.
- Debbie Stabenow (D-Mich.): Called the plan a short-term fix that avoids addressing root problems.
- American Farm Bureau Federation: Welcomed the aid but urged long-term trade stability.
Implementation and Timeline
- Administered by: U.S. Department of Agriculture (USDA).
- Eligibility: Farmers of key crops like soybeans, corn, wheat, and cotton.
- Timeline:
- Announcement: September 25, 2025.
- Funding Approval Needed: By Congress, likely in November 2025.
- Expected Rollout: Late 2025 or early 2026.
- The October 1, 2025, government shutdown may delay USDA operations and aid distribution.