Trump unveils $12B aid package for farmers hit by trade war

US President Donald Trump on Monday unveiled a $12 billion aid package for American farmers, the latest government effort to shore up a key political constituency hurt by the financial fallout from his trade policies, Report informs via Reuters.

Farm groups and Republican farm-state lawmakers have sought the aid in part to support farmers with purchases of seeds, fertilizer and other expenses for next year's growing season.

The aid package aims to support a loyal voting bloc that has largely stood by Trump despite facing billions in lost sales from his trade war with China.

Trump announced the aid at a roundtable at the White House alongside Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins and members of Congress. Growers of corn, cotton, sorghum, soybeans, rice, cattle, wheat and potatoes attended the roundtable, a White House official said.

"This relief will provide much needed certainty to farmers as they get this year's harvest to market and look ahead to next year's crops, and it'll help them continue their efforts to lower food prices for American families," Trump said.

Rollins said that $11 billion of the aid will go to row crop farmers and will be disbursed by February 28. The administration is holding back the remaining $1 billion for fruits, vegetables and other crops to finalize the details, Rollins said.

Bessent said the payments will be a "liquidity bridge during a period of adjustment" to support farmers until they see benefits from Trump's trade deals and other policies.

The money for the package will come from the Commodity Credit Corporation, a discretionary USDA fund, and will be offset by tariff revenue, Rollins told reporters at the White House later on Monday, without providing further details.

Payments will be calculated based on how many acres farmers have planted, their production costs and other factors, said Richard Fordyce, USDA under secretary for farm production and conservation.