Economy

Trump’s Farm Aid: How Trade Disputes Threaten US Farmers and What’s Next

U.S. farm economy struggles due to trade issues. Aid package expected next week to help farmers.

September 30, 2025, 11:23 PM

Farmer examining rows of soybean plants in a field during daytime

A farmer wearing a red cap and brown t-shirt walks through a lush green soybean field, inspecting the crop. By Fotokostic / Shutterstock.com.

Executive Summary

Agriculture Secretary Brooke Rollins stated the U.S. farm economy is “not in a good place” due to lost sales from trade severances, particularly with China.

President Trump is expected to announce an aid package for farmers as early as next week, potentially using tariff revenue to alleviate financial strain.

Lawmakers, including Senators Grassley and Thune, expressed significant concern over the farm economy, urging a swift trade deal with China and highlighting the impact of retaliatory tariffs on American farmers.

The Story So Far

The U.S. farm economy is experiencing a significant downturn primarily due to lost sales stemming from trade severances, particularly with China, which has imposed retaliatory tariffs and drastically reduced its purchases of American agricultural products like soybeans. This situation has created considerable financial strain for U.S. farmers, prompting President Trump’s administration to develop an aid package, potentially funded by tariff revenues, to mitigate the economic impact.

Why This Matters

The U.S. farm economy is currently facing significant challenges due to lost international sales, notably a 51% decline in soybean purchases by China, directly impacting farmers’ livelihoods. In response, President Trump’s administration is preparing an aid package, likely funded by tariff revenues, to mitigate these financial strains, while lawmakers are increasingly pressuring for a swift trade deal with China to stabilize the agricultural sector.

Who Thinks What?

Agriculture Secretary Brooke Rollins acknowledges the U.S. farm economy is struggling due to lost sales, particularly with China, but expresses optimism for a future “Golden Age” and states President Trump is committed to providing aid, potentially from tariff revenues.

Senator Chuck Grassley (R-Iowa) criticizes the administration for providing financial support to Argentina while U.S. farmers face a lack of soybean sales to China due to retaliatory tariffs, urging for a swift trade deal to boost the farm economy.

Senate Majority Leader John Thune (R-S.D.) notes that farmers are contending with markets “not open to some of our commodities” as they anticipate a large harvest, suggesting that financial assistance for farmers would likely come from tariff revenues.

Agriculture Secretary Brooke Rollins stated on Tuesday that the U.S. farm economy is currently “not in a good place,” attributing the downturn to lost sales stemming from trade severances, particularly with China. Rollins indicated that President Trump is committed to supporting farmers, with an announcement regarding aid expected as early as next week.

Agricultural Economic Challenges

Speaking on Fox Business’s “Making Money with Charles Payne,” Rollins acknowledged the difficulties faced by the agriculture industry. Despite the current challenges, she expressed optimism, suggesting a “Golden Age” for farmers was “around the corner.” Data cited by The New York Times indicates that China’s purchases of American soybeans through July were 51 percent lower than during the same period last year, highlighting the impact of trade disruptions.

The Trump administration has been exploring options to alleviate the financial strain on farmers. Last week, Rollins mentioned ongoing discussions within the White House for a “farmers aid package.” President Trump has also proposed using tariff revenue to provide financial assistance, a suggestion made in response to concerns raised by Republican lawmakers from rural areas.

Congressional Concerns

The state of the farm economy has drawn significant attention from lawmakers. Senator Chuck Grassley (R-Iowa) publicly criticized the administration’s decision to provide financial support to Argentina at a time when China is increasing its soybean imports from the South American nation. Grassley highlighted the frustration among U.S. farmers over the lack of American soybean sales to China, which continues to impose a 20 percent retaliatory tariff, and urged for a swift trade deal with China to boost the farm economy.

Senate Majority Leader John Thune (R-S.D.) echoed these concerns during an appearance on NBC’s “Meet the Press.” He noted that farmers are contending with markets that are not “open to some of our commodities” as they prepare for a substantial corn and soybean harvest with limited market access. Thune also suggested that financial assistance for farmers would likely be sourced from tariff revenues.

Outlook for the Farm Sector

The U.S. agricultural sector continues to navigate the complexities of international trade disputes and their direct impact on commodity sales. As farmers face reduced demand and retaliatory tariffs, the administration’s forthcoming aid package and ongoing trade negotiations are closely watched as potential avenues for economic relief and market stabilization.