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Trump administration farmer bailouts

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Trump administration farmer bailouts are a series of United States bailout programs introduced as part of the economic policy of Donald Trump to help US farmers suffering due to the China–United States trade war and trade disputes with European Union, Japan, Canada, Mexico, and others.

The bailouts were authorized directly by the executive branch under the Commodity Credit Corporation act and were not subject to Congressional approval.[1]

Justification

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Due to the China–United States trade war, China imposed tariffs on peanut butter, soybeans, orange juice, and other agriculture products that affected US farmers, especially in swing states, such as Iowa, Ohio, and Wisconsin.[2] US farmers lost access to import markets in China, which represented the second largest market for US agriculture export in 2017.[3][4] The export of soybeans, primarily used as animal feed, to China fell by 94% in 2017.[5] It fell to zero by November 2018.[6] Similar tariffs affected demand for U.S. pork and dairy products.[2]

In 2019, public health officials reported increased suicides caused by unpredictable financial conditions among, especially young farmers. Bankruptcies and delinquent loan payments by farmers also increased drastically.[7][8] The number of farm bankruptcies in the second quarter of 2025 was double the number of bankruptcies for the entire year of 2024.[9]

Bailouts

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First presidency of Donald Trump

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In July 2018, the United States Department of Agriculture distributed $12 billion in direct cash payments to producers of corn, cotton, soybeans, sorghum, wheat, dairy, and certain meat products.[10][11] Soybean producers received $7.3 billion in payments, more payments than any other agricultural producers because of the impact on US soybean exports.[11]

In 2019, Trump added $16 billion in bailout funds.[12][13][14] This bailout had more requirements due to claims of abuse in the 2018 program.[15]

US farmers who earned less than $900,000 a year and produced one of the agriculture products suffering from the China–United States trade war could apply for the program. The bailout's limit of support for a single farmer was $125,000 per person or legal entity. US citizens owning partial shares of a land but not profiting directly from farming could apply for government aid as well.[16][17]

Second presidency of Donald Trump

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In December 2025, the administration announced $12 billion "available in one time bridge payments to American farmers". Of the $12 billion, $11 billion was allocated to farmers of barley, chickpeas, corn, cotton, lentils, oats, peanuts, peas, rice, sorghum, soybeans, wheat, canola, crambe, flax, mustard, rapeseed, safflower, sesame, and sunflower.[18]

References

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  1. ^ Charles, Dan (December 31, 2019). "Farmers Got Billions From Taxpayers In 2019, And Hardly Anyone Objected". NPR.
  2. ^ a b Gu, Hallie; Daly, Tom (August 5, 2019). "U.S. farmers suffer 'body blow' as China slams door on farm purchases". Reuters.
  3. ^ "Major U.S. Agricultural Export Markets: China, Canada, and Mexico" (PDF). Farm Credit Administration.
  4. ^ "U.S. Agricultural Exports to China". United States Department of Agriculture. 11 May 2017.
  5. ^ Appelbaum, Binyamin (May 11, 2018). "Their Soybeans Piling Up, Farmers Hope Trade War Ends Before Beans Rot". The New York Times.
  6. ^ "China is officially over American soybeans". Quartz. 24 December 2018.
  7. ^ Kilgannon, Corey (Mar 19, 2018). "When the Death of a Family Farm Leads to Suicide". The New York Times.
  8. ^ Jones, Chuck (August 30, 2019). "Amid Trump Tariffs, Farm Bankruptcies And Suicides Rise". Forbes.
  9. ^ Ma, Jason (October 4, 2025). "Farm bankruptcies are soaring amid low crop prices, while Trump considers bailout of up to $14 billion". Fortune.
  10. ^ "US to give farmers $12bn trade war bailout". BBC News. July 25, 2018.
  11. ^ a b "China's Retaliatory Tariffs on U.S. Agricultural Products". United States Congress. January 29, 2020.
  12. ^ Daniels, Jeff; Wilkie, Christina (May 23, 2019). "Trump administration unveils $16 billion bailout to farmers hurt by China trade war". CNBC.
  13. ^ "Trump administration unveils $16 billion bailout to farmers hurt by China trade war". CNBC. May 23, 2019.
  14. ^ Meyer, Gregory (July 25, 2019). "US increases federal aid for farmers hit by China trade war". Financial Times.
  15. ^ "Trump administration reveals details of $16 billion farm". The Washington Post. July 25, 2019.
  16. ^ Swanson, Ana (May 23, 2019). "Trump Gives Farmers $16 Billion in Aid Amid Prolonged China Trade War". The New York Times.
  17. ^ Rappeport, Alan (August 27, 2019). "Farmers' Frustration With Trump Grows as U.S. Escalates China Fight". The New York Times.
  18. ^ "Trump Administration Announces $12 Billion Farmer Bridge Payments for American Farmers Impacted by Unfair Market Disruptions" (Press release). USDA. December 8, 2025.
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