USDA to roll out a $12 billion post-shutdown tariff relief fund. Critics say it may not be enough.

The United States Department of Agriculture (USDA) put aside $12 billion for farmers who have experienced tariff losses because of President Donald Trump’s negotiations with China, POLITICO reports. 

According to the outlet, the money is coming from taxpayer dollars from an internal USDA account and will be rolled out once the government shutdown—officially the longest one on record as of January 25, 2019—is lifted. 

Earlier this month, the news site reported that the USDA and the Office of Management and Budget had set aside a similar sum. However, the specific amount allocated to aid farmers' tariff losses was unknown. 

The $13 billion allocation raised concerns on Capitol Hill as some key farmers’ aid programs have run out of funding, and the government agency did not notify lawmakers of any transfers.

A spokesperson for the USDA stated that making the shift was a difficult choice, as it is a challenging time for the farm economy, and “President Trump is utilizing all the tools available to ensure farmers have what they need to continue their farming operations for generations to come.”

Government data show that out of the $13 billion, only $10 billion is left to aid growers. The remaining $3 billion was used by the USDA at the end of October to resume core operations at the Farm Service Agency. The investment restored limited staffing to process payments and assist with farm loan and commodity program services.

Increasing farmer tariff losses 

On November 1, the White House announced a trade deal with China, along with the suspension of all retaliatory tariffs placed “on a vast swath of US agricultural products.” These included wheat, corn, soybeans, fruits, and vegetables. 

However, representatives from the soybean industry and the state of Nebraska told the local channel Nebraska.TV that the announced provisions are not enough. The industry, they said, has already suffered a significant number of tariff losses, and given the state’s bumper crop this year, USDA allocated funds might not be sufficient to offset them.

Nebraska Farmers Union President John Hansen added that the tariff has not only cut farmers’ profits, but also further strained their budgets. Operational expenses have been on the rise in the agricultural industry, driven by increasing prices for fertilizers, farming supplies, and repair parts.

According to a report by the non-profit news organization Investigate Midwest, growers might experience approximately $44 billion in net cash income losses from their 2025–26 crops due to rising costs, low crop prices, and the effects of the trade war. 

North Dakota State University’s Agricultural Risk Policy Center estimates $20 billion in losses for corn farmers, $10 billion for soybean growers, and $8.5 billion for wheat producers. For farmers of peanuts, cotton, barley, oats, grain sorghum, and rice, the organization projects a combined loss of $6 billion.

This is not the first time the Trump Administration has had to provide aid for farmers as a result of trade tensions with China. During his first term, the USDA rolled out around $28 billion worth of aid, which came from the agency’s internal fund.

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