Trump promised farmers a bailout. Time is running out.
The White House blames Democrats and the government shutdown for the delay of their multi-billion-dollar bailout, but that’s just one of many problems the administration faces.
By Myah Ward and Grace Yarrow
President Donald Trump promised a bailout for farmers reeling from the effects of his tariffs and the high costs for fertilizer and other equipment.
But the money hasn’t come, and time is running out before farmers have to make crucial decisions about next year’s planting season.
The White House blames Democrats and the government shutdown for the delay of its multi-billion-dollar bailout, but that’s just one of many problems the administration faces. Even if there were a quick end to the shutdown, it would likely take months to get money to the farmers who need it most, according to industry insiders and farm-state senators.
“Farmers are hurting financially,” Sen. Jerry Moran (R-Kansas) told POLITICO. “They’re very troubled, there’s some expectation for help. Emotionally, it would be great for something to happen soon. But financially, they need to be able to go to their bankers and say that help is on the way.”
Administration officials have not finalized how much money to include in the first tranche of aid, how to pay for it and how to deploy it. The rollout is also complicated by an escalating trade war with China, from which the administration is loath to back down. This story is based on interviews with 10 people, including Trump administration officials, those close to the administration, lawmakers and industry experts.
And hovering over it all is a rapidly shrinking timeline: Agriculture industry experts and lawmakers say farmers need the White House’s commitment in the next few weeks as they look to supplement depressed harvest revenue and plan for how to pay for next year’s planting season.
Failure to act could ripple across the U.S. economy, impacting Americans well beyond the core constituency of farmers that Trump repeatedly claims he “loves.”
“Not only is market access a challenge with where we sell our goods, but we will start to see a spike in food prices,” said Oscar Gonzales, a top aide to Agriculture Secretary Tom Vilsack during both the Obama and Biden administrations. “We’re starting to reach that precarious zone of not allowing farmers the tools, the commitments that they need to plan — it’s upon us already, to be honest. Farmers are going to need something.”
Spokespeople for the White House and Agriculture Department argued Democrats have stalled progress in helping farmers by prolonging the shutdown, but the president and his team continue to prioritize the issue. The USDA spokesperson, Alec Varsamis, said the president has “made clear he will not leave farmers behind,” and that USDA continues to “assess the farm economy and explore the need for assistance.” Both officials had nothing to share on any upcoming announcements.
“President Trump, Secretary [Scott] Bessent, and Secretary [Brooke] Rollins are always in touch about the needs of our farmers, who played a crucial role in the president’s November victory,” White House spokesperson Anna Kelly said in a statement. “No decisions have been made, but we look forward to sharing good news soon.”
Trump promised in September that he would use tariff revenue to pay farmers who he admitted would be hurt “for a little while” by his trade wars. But his off-the-cuff announcement immediately prompted surprise and concern from GOP lawmakers and administration officials who questioned the legality and availability of tariff revenue for direct payments to farmers.
“The [administration] wants to get it right. They don’t want to overdo it. They don’t want to underdo it. There is tariff revenue there, and there’s some legal complications — and it’s easier to talk about than it is to do,” said a person close to the Trump administration, granted anonymity to speak candidly, adding that they’re running out of time to finalize the plan. “That is the gun they’re under.”
Now, USDA officials and Hill lawmakers are scrambling to find a way to pay for the tens of billions of dollars in aid that powerful farm lobbying groups are pushing for, with some estimating that the cost of a bailout package could range up to $50 billion.
“It’s just a matter of figuring out how much money’s going to be needed and how it’s going to be allocated,” said Senate Agriculture Committee Chair John Boozman (R-Ark.).
Boozman and other appropriators are expecting the money to come from a combination of sources, including USDA’s emergency funds and congressionally allocated economic assistance — which could trigger another funding fight later this year with some Democrats making their own demands or fiscal conservatives refusing to agree to expensive payments to farmers.
“Even if Trump made the decision today, it would still take weeks and probably months before those checks get sent out,” said Sen. Roger Marshall (R.Kansas).
This is the second time the administration has found itself caught between its policy priorities and angry farmers suffering the repercussions. The administration’s deportation agenda also spurred backlash from farmers reliant on undocumented labor.
Administration officials are quietly starting to put aside money that could work for the aid package and have continued to sort through the logistics, even amid the shutdown that has added another challenging layer to the process. The White House’s Office of Management and Budget privately OK’d readying between $12 billion and $13 billion that could be rolled out as soon as the start of next year but may also be needed for other farm programs.
“[Rollins is] literally combing through every other possible solution on the table to help our nation’s farmers, like looking at input cost issues,” said a person close to the Agriculture secretary who was granted anonymity to speak about her efforts. “The support is coming — it’s just a matter of the fine details.”
Finalizing those details has been further complicated by the trade war with China, and the president is set to travel to Asia later this month, where he’s expected to meet with Chinese leader Xi Jinping. China has stopped its purchase of American soybeans, crushing the U.S. market, as part of a tit-for-tat trade war between the two countries.
That the U.S. is working on a plan to provide Argentina, a soybean competitor, with $40 billion in financing has added to farmers’ grievances.
“The frustration is overwhelming,” American Soybean Association President Caleb Ragland said in a statement. “U.S. soybean prices are falling, harvest is underway, and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina while that country drops its soybean export taxes to sell 20 shiploads of Argentine soybeans to China in just two days.”
Republican lawmakers have urged the White House to act quickly to slow the compounding concerns they warn could lead to a farm economic crisis similar to the one in the 1980s that triggered mass bankruptcies and rural flight. Producers of crops like corn, soy and other grains experienced a major harvest yield this fall and are struggling to find places to store it while they hope for good news on new trade deals that Trump promised them.
Senate Agriculture Committee Republicans requested a meeting with Trump to explain the dire situation in farm country and urge bailout action as soon as possible.
Sen. Jim Justice (R-W.Va.) predicted that tens of thousands of farmers “won’t have any choice” but to give up their operations or sell their land to avoid another year of emerging from the harvest season in the red.
A bailout, he added, would be “a Band-Aid on cancer.”
“I mean, that’s not going to fix the situation,” Justice said. “We take [farmers] for granted. And it’s not fair, it’s not right and what’s going to happen is we’re going to awaken one day to a very, very bad situation.”
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