① Trump announced on Monday that the federal government will provide $12 billion in aid to American farmers, of which $11 billion will be paid to farmers in a one-time payment to address the negative impact of U.S. tariffs on agriculture; ② American farmers believe that the aid is unlikely to truly drive the agricultural economy toward a sustainable recovery, pointing out that they have faced years of difficulties including weak exports, low crop prices, and rising costs.
According to CCTV News, US President Trump announced at the White House on Monday afternoon (December 8) that the federal government will provide $12 billion in aid to American farmers to counter the "backlash" of US tariff policies on US agriculture.
According to the plan, $11 billion of the $12 billion will be paid to farmers in a lump sum under the U.S. Department of Agriculture’s newly established “Farmer Bridge Relief” program, while the remaining $1 billion will be reserved for other crop growers who are not covered.
In response, American farmers said that while the $12 billion bailout may provide a short-term respite, it is unlikely to truly drive the agricultural economy toward a sustained recovery.
Missouri farmer Marty Richardson commented, "This is more like a band-aid—what we need is a market, not subsidies. We're already buying next year's seeds and fertilizer; we're in a very difficult position."
For years, American farmers have faced the challenges of weak exports, low crop prices, and rising costs. Under Trump's tariff policies, demand has been further squeezed, costs have been pushed up, and the entire industry remains in a state of uncertainty.
Data from the Department of Agriculture shows that annual sales revenue for U.S. corn, soybeans, and wheat has declined since 2022. While recent expectations regarding the trade outlook have boosted agricultural confidence to its highest level since June, the fundamentals have not shown any clear signs of a reversal.
Federal data shows that the number of farm bankruptcies is rising. While the U.S. Department of Agriculture predicts that net farm income will increase this year, this rebound is largely driven by federal government aid.
Barry Evans, who grows sorghum, cotton, and wheat in Texas, says that timing is critical for South Texas farmers because with only weeks until planting, they need to make plans and secure loans as quickly as possible.
“Both cotton and wheat are heavily reliant on export markets, but those markets are in complete disarray right now. Our selling prices are terribly low, while costs are skyrocketing. These factors combined create immense pain. We really need this bailout.”
Some analysts believe that the global dominance of US agriculture is waning because consuming countries can shift their supply chains to regions such as South America, causing market share that originally belonged to US products to flow to other countries such as Brazil.
The fact that the US farm economy is struggling to recover was confirmed once again last month: Deere Agricultural machinery manufacturers, including Deere & Company, have released disappointing outlook forecasts.
This reflects that farmers are still delaying tractor purchases despite Trump's strong urging. On Monday, Trump also pressured these companies to lower prices, accusing them of driving up costs for farmers.
Many believe that the U.S. agricultural economy will remain in trouble next year. ( Rabobank) Agricultural input analyst Sam Taylor commented, "By this time next year, we'll probably still be discussing the same issues: growers' profit margins and whether more financial assistance is needed."
Taylor said, "The industry downturn may last a little longer than some people expect."
(Article source: CLS)
