The American agricultural sector continues to struggle, with President Trump's $12 billion aid package for farmers being described as a temporary fix for more significant underlying issues.

On Monday, Trump, alongside Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, and National Economic Council director Kevin Hassett, announced a $12 billion farm aid program, which outlined much-needed relief for farmers who sounded the alarms about increasing input costs and fewer export opportunities amid ongoing trade tensions. Farmers will begin receiving funds by the end of February, Rollins said.

“Now we’re once again in a position where a president is able to put farmers first,” Trump said at a Monday roundtable of farmers and lawmakers. “But unfortunately, I’m the only president that does that.”

Although growers and agricultural experts view the initiative as a means to progress following a subpar crop year, they are concerned that the established practice of direct financial aid doesn't offer enduring remedies for a struggling sector, and they doubt the $12 billion contribution is sufficient to address agriculture's more profound issues.

“We’re talking $12 billion, and while it is a lot of money, in the grand scheme of things, it’s still going to be a Band-Aid on a bigger wound,” Ryan Loy, assistant professor and extension economist for the University of Arkansas Division of Agriculture, told Coins2Day. “How can we triage this situation right now, work on that longer-term solution? That’s really, I think, the overall attitude toward it.”

The singular payment initiative will disburse $11 billion to substantial producers of staple crops like corn, soybeans, and rice, with the remaining $1 billion set aside for those cultivating specialized crops, such as sugar. Trump indicated that further assistance initiatives would hinge on advancements in trade with China and other nations. Although the financial assistance is appreciated, agriculturalists express a preference for the government to ensure dependable markets and trade connections.

“At the end of the day, the farmers, they just want to conduct business, not necessarily have to get these packages to help them out during these times,” Loy said.

Farmers’ struggles

Following Trump's implementation of broad import duties, particularly targeting China and sparking reciprocal tariffs, agricultural producers have experienced a rise in their operational expenses, alongside a decline in export interest and commodity values. 

“It’s been a bit of a roller coaster in terms of not just uncertainty over our global markets and our prices, but also whether or not we were going to see any relief on the input side,” Kyle Jore, an economist, northwest Minnesota-based farmer, and secretary of the Minnesota Soybean Growers Association, told Coins2Day.

Farmers in the U.S. Are facing an additional expense of approximately $33 billion due to a 9% tariff on agricultural equipment, seeds, and fertilizer, as reported by North Dakota State University's Agricultural Trade Monitor. This levy encompasses a tax exceeding 15% on items such as tractors and herbicides.

Producers of soybeans, which account for The United States' largest farm commodity export, comprising roughly 14% of the country’s total crops shipped abroad, have experienced hit particularly hard due to import duties. Commercial disagreements with Beijing have discouraged the purchase of U.S. Soybeans by China, leading the nation to seek supplies from South American nations such as Argentina and notably Brazil, which supplies approximately 71% of China’s soybean imports, as reported by The American Soybean Association.

Certainly, thawing relations involving the United States and China has stimulated the trade of soybeans. In October, China pledged to acquire resume orders of soybeans originating from the U.S. Subsequent to a complete cessation of acquisitions in May, vowing to procure 12 million tons of soybeans by the close of the year, in addition to at least 25 million tons annually for the subsequent three years. Nevertheless, the cost of soybeans has continued to decline owing to suppressed demand, and growers experienced a reduction in their third straight year of losses, largely attributable to the disruption caused by tariffs.

Agricultural economists suggest that Trump's farm assistance initiative is not detrimental, though its positive effects are constrained. The announcement of the financial relief came toward the conclusion of the harvesting period, by which time producers had already secured contracts at reduced rates, making losses for the year almost certain. Furthermore, the aid package fails to tackle the issue of production expenses, which Jore considers essential for enhancing narrow profit margins.

“A lot of farmers are making purchasing decisions on the ‘26 year crop right now,” he said. “And the hope was that by now, we’d start to see some of the fertilizers and stuff come down, and it’s just not happening to the extent that we were hoping for.”

Changing systems

Joe Maxwell, a farmer from Missouri and a co-founder and chief strategy officer for the agricultural oversight organization Farm Action, stated that numerous problems affecting the U.S. Agricultural sector, such as the expense of inputs, extend past the trade disagreements initiated by The Trump administration. His positive reaction to the bailout plan was moderated by his conviction that the administration ought to be tackling regulations that have been detrimental to the industry for a considerable time.

“The message we’re wanting to get to Washington, D.C., is that the system is broke,” Maxwell told Coins2Day. “We need the financial support that the president has announced. But we need Congress to take a serious look at the structure of these programs, because it’s just failed.”

Maxwell stated that although expenses for supplies have significantly increased due to tariffs, the escalation in fertilizer and seed costs is primarily attributable to the dominance of corporate mergers and monopolies within the supply sector. Farm Action's Agriculture Consolidation Data Hub reveals that three major fertilizer producers—CF Industries, Nutrien, and Koch—collectively hold 93% of the North American market share for nitrogen fertilizer. Likewise, four seed corporations, namely Bayer, Corteva, ChemChina, and BASF, command 60% of the worldwide seed market.

On Saturday, Trump enacted a measure executive order that established a task force to look into supposed antitrust activities affecting agricultural expenses.

“There is a disconnect from the fundamentals in the market, basic supply, demand,” Maxwell said. “One of the fundamentals is competition, and that does not exist in America’s agriculture.” 

Maxwell additionally pointed out that Congress provides subsidies for agricultural exports, a situation he contended has led to an excess supply. This, he elaborated, leaves American agriculturalists, including those who cultivate soybeans, vulnerable during periods like trade conflicts when the desire for exports sharply declines. Furthermore, these financial aids deter U.S. Growers from cultivating produce and vegetables that would reduce the nation's dependence on foreign markets and promote a variety of crops. Such diversification, Maxwell maintained, is more conducive to sustainable agricultural methods such as rotating crops, which can lower expenses for materials and subsequently increase earnings.

The USDA directed Coins2Day to its press release about the bailout program when asked for comment.

Maxwell stated that until the administration tackles the alleged anticompetitive input sector and the ways in which financial aid might be jeopardizing the farming industry during periods of trade instability, financial assistance programs will have limited effectiveness.

“If we don’t go after the antitrust violations that are there, and we don’t change the structure of our farm programs, we will not solve the financial crisis farmers are facing today,” he concluded.