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Trump, Donald

White House Scrambles to Unlock Billions in Relief for US Farmers Amid Trade War

Strategic Insights

— 2 min read

White House officials are struggling to unlock billions of dollars in relief for US farmers reeling from the trade war with China, as administration and congressional sources indicate that a farm bailout likely would have been announced if not for the government shutdown. According to sources familiar with the matter, Agriculture Secretary Brooke Rollins has found a legal way to tap into a Depression-era fund and move around leftover money from the prior fiscal year to reopen all 2,100 USDA county offices. This maneuver unlocked more than $3 billion in emergency aid and regular program assistance for farmers across the country.

Key Takeaways:

  • The White House is scrambling to unlock billions of dollars in relief for US farmers caught up in the trade war with China, with administration and congressional sources indicating that a farm bailout likely would have been announced if not for the government shutdown.
  • Agriculture Secretary Brooke Rollins has found a legal way to tap into a Depression-era fund and move around leftover money from the prior fiscal year to reopen all 2,100 USDA county offices, unlocking more than $3 billion in emergency aid and regular program assistance.
  • The plan to use tariff revenue to help farmers is still on the table, with the administration considering leveraging funds generated from Trump's tariff policies, as well as money from a little-known USDA fund.
  • The shutdown has complicated the process, with federal employees tasked with planning and executing the bailout being furloughed, and Congress still debating the size of the bailout package.
  • A larger bailout package of $10 billion to $14 billion has been floated, but farmers say they'd rather sell their crops than receive bailouts, and argue that it would make sense to use tariff money to help those impacted.
  • The growers of nine of the biggest row crops were already projected to lose up to $45 billion this year because of soaring production costs and low crop prices, according to Shawn Arita, an economist at North Dakota State University's Agricultural Risk Policy Center.
  • Many farmers are expressing frustration with President Trump's whiplash on tariffs, with Sen. Kevin Cramer saying that if the president can pull off a big trade deal with China that involves the sale of soybeans, "all will be forgiven."

Statistics:

  • More than $24 billion in agricultural exports, with soybeans valued at over $12 billion last year, according to USDA data.
  • 70% of US soybeans were previously imported by China, but have not been imported since May.
  • The growers of nine of the biggest row crops were already projected to lose up to $45 billion this year, with low crop prices and soaring production costs contributing to the losses.
  • 2,100 USDA county offices were reopened thanks to Rollins' maneuver, with two employees per office returning to work to facilitate the distribution of aid.

Sources:

  • CNN (no date)
  • USDA data (no date)
  • White House officials (no date)
  • Sen. Kevin Cramer (no date)
  • Agriculture Secretary Brooke Rollins (no date)
  • Treasury Secretary Scott Bessent (no date)
  • Shawn Arita (no date)
  • Lesly Weber McNitt (no date)
  • Bob Worth (no date)
  • Joe Glauber (no date)
  • Associated Press (no date)
  • North Dakota State University's Agricultural Risk Policy Center (no date)
  • CNN's René Marsh and Morgan Rimmer (no date)

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