U.S. farmers have until Dec. 19 to gather details for federal aid meant to offset losses spurred by the Trump administration's tariffs and other financial pressures and a Minnesota-based expert said despite short-term relief, big problems aren't going away.
This week, the U.S. Department of Agriculture announced a $12 billion relief package as some farmers struggle to stay afloat due to a declining export market linked to expanded tariffs. Similar payments were issued during the heightened trade war in Donald Trump's first presidency.
Ben Lilliston, director of rural strategies and climate change at the Institute for Agriculture and Trade Policy, said a quick infusion of aid can ease some pressure but does not get to the bottom of how expensive it is to farm these days.
"It doesn't address the underlying problems, and really, the big one is increased costs," Lilliston explained. "Many of those costs are associated with these tariffs. So, higher prices for machinery, for crop inputs."
The institute said payments under the first Trump White House were not easy to access for small-to-mid-sized farms. Payment rates for the new aid are not yet public but Lilliston added it is frustrating beef and dairy producers are not included since costs are higher for them, too. The Trump administration insists the latest payments will help address rising expenses for covered commodities, along with price volatility.
The USDA pointed to provisions in legislation known as the "One Big Beautiful Bill Act" meant to help farmers in the coming year and positive trade developments with countries like China. Lilliston countered tariff unpredictability has hurt America's reputation on the global front, with agriculture losing ground in the fallout.
"Many of the agreements that they are touting aren't actually trade agreements," Lilliston contended. "They are sort of tentative promises to do certain things in the future but they're not written down. We have yet to see actual text of a trade agreement, including with China."
In recent days, a U.S. trade representative responded to concerns about the slow pace of China resuming soybean purchases, noting the agreement should be fulfilled by the end of February, which is pushed back from an original goal of late December. In a national survey, leading ag economists remain skeptical of China's commitments.
Lilliston added if 2026 is filled with more market headaches and if a new Farm Bill is not negotiated and passed, more emergency payments might be needed next fall, a situation he said farmers do not want to be in.
"They are 'price takers' in the marketplace, meaning they don't get to set their prices and they have certain costs that they have to cover," Lilliston outlined. "They don't have much power, and they would much rather have that system work better for them, rather than having to get money from Washington."
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