In response, the US President Donald Trump has declared a $12 billion farm aid package to assist farmers who have to deal with low crop prices and trade disputes. The Farmer Bridge Assistance programme will directly pay about $11bn to the farmers of the major row crops, and $1bn will be allocated to specialty crops. According to Trump, the steps would increase domestic production and contribute to the reduction in food prices.
The persistent trade conflicts, particularly with China, have impacted farmers negatively because the consumption of US soybeans and sorghum has been stalled. The new aid will assist farmers in selling this season’s produce and plan for the next season. Treasury Secretary Scott Bessent added that the package will act as a bridge until the market conditions improve.
Though most farmers are happy with the relief, they acknowledge that it will not address the long-term issues, such as the high cost of production and poor export markets. Trump also promised the introduction of a new 5 percent tariff on Mexico regarding the issues of water supply, which further cast doubt on the agricultural industry.
