Business : Local farmer speaks with Trump Administration as $12 Billion Aid Announced

Cordt Holub of Dysart sits next to President Trump at a Cabinet Meeting concerning the $12 billion coming to farmers this month. Photo courtesy of the White House

On Monday, the Trump administration unveiled a $12 billion aid package to help farmers hit hard by tariffs, rising costs, low prices, and weak trade deals. The one-time "bridge payments" aim to provide quick relief while new trade agreements take hold.

The announcement came with President Trump, USDA Secretary Brooke Rollins, Treasury Secretary Scott Bessent, U.S. lawmakers, and farmers from eight states in attendance. Cordt Holub of Dysart, was one of the farmers and spoke with President Trump and cabinet members concerning the $12 billion aid package coming to farmers this month.

The funding comes from tariff revenue and addresses "temporary" trade disruptions and higher production costs. Officials blamed these issues on "four years of disastrous Biden Administration policies that resulted in record high input prices and zero new trade deals."

Key Details of the Aid

• Farmer Bridge Assistance (FBA) Program: Up to $11 billion will go to row crop farmers growing barley, chickpeas, corn, cotton, lentils, oats, peanuts, peas, rice, sorghum, soybeans, wheat, canola, flax, mustard, rapeseed, safflower, sesame, and sunflower.
• Purpose: Covers market losses from unfair foreign trade practices, high input costs, inflation, and export barriers.
• How It Works: Payments use a simple formula based on national averages from planted acres, production costs, yields, prices, and economic models. It covers a portion of estimated 2025 crop year losses.
• Timeline: Eligible farmers must report 2025 acreage accurately by 5 p.m. EST on December 19. Payments arrive by February 28, 2026. Commodity-specific rates will be announced by month's end.
• No Crop Insurance Required: But the USDA urges farmers to use new tools from the One Big Beautiful Bill Act for future price protection. (Note: Replace with actual link if available.

The remaining $1 billion targets other commodities like specialty crops and sugar.

The program runs through the Commodity Credit Corporation and Farm Service Agency (FSA). For questions or meetings, email farmerbridge@usda.gov.

Why Farmers Need This Help

This year, tariffs – especially on China, a top soybean buyer – sparked backlash. China skipped U.S. orders early on but has started buying again.

Secretary Rollins highlighted soaring costs: fertilizer up 36%, labor up 47%, and interest rates up 73%. She said the lack of new deals flipped a trade surplus from Trump's first term into a $50 billion deficit.

Farmers prefer open markets over aid, and Rollins agrees but said that this is a short-term fix. "To get from what happened under the last president... to this new golden age for farmers – where instead of farming for government checks they farm to feed their family and sell their products – this bridge is absolutely necessary," Rollins said.

Broader Support and Future Wins

Despite challenges, the administration points to progress:

• Aid Already Sent: Over $30 billion this year, including $9.3 billion to 560,000+ farmers for soy, corn, sorghum, and more; $1.2 billion for 52,000 specialty crop producers; and $6 billion in disaster relief for 388,000 farmers. Another $9 billion is coming soon.
• Government Purchases: $1 billion in U.S. ag products bought.
• New Trade Deals: Access gained with Switzerland, Liechtenstein, El Salvador, Argentina, Japan, Ecuador, Guatemala, Malaysia, Cambodia, Thailand, South Korea, Philippines, Indonesia, Vietnam, the European Union, and China.

The One Big Beautiful Bill Act (OBBBA) brings long-term boosts:

• Reference prices up 10-21% for major crops like soybeans, corn, and wheat, reaching eligible farmers by October 1, 2026.
• Cheaper crop insurance, especially for young farmers.
• 30+ million new base acres for price support programs.
• Permanent 20% qualified business income deduction.
• Full bonus depreciation for equipment, barns, and land upgrades – deductible in the purchase year.
• $15 million estate tax exemption per person, now inflation-adjusted.

This package offers immediate cash while setting up stronger markets ahead, officials say. Farmers can keep producing and planning for the future.