USDA to provide $12 billion in aid to farmers

President Donald Trump announced Monday (Dec. 8) that the U.S. Department of Agriculture (USDA) will provide $12 billion in bridge payments to farmers reeling from low commodity prices and tariff pressures.

These bridge payments are intended in part to aid farmers until investments from the One Big Beautiful Bill Act (OBBBA), including reference prices which are set to increase between 10%-21% for major covered commodities such as soybeans, corn, and wheat, reach eligible farmers on Oct. 1, 2026.

U.S. Sen. John Boozman, R-Ark., chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, applauded the move.

“America’s farm families share President Trump’s vision for increased market access. Delivering this farm assistance will bridge the gap until farmers realize the benefits of the recent trade deals and the One Big Beautiful Bill that will provide the certainty they need,” he said.

“As chairman of the Senate Agriculture Committee, American agriculture will continue to provide the safest, most affordable food, fuel and fiber in the world. This announcement provides much needed relief to rural America. My colleagues and I remain focused on the state of farm country and are prepared to pursue additional steps to ensure a strong future for farm families,” he added.

U.S. Sen. Amy Klobuchar, D-Minn., and the ranking Democrat on the Senate’s agri committee, said farmers have been hurt by Trump’s trade policies which have resulted in China and other major trade markets significantly reducing purchases of American agri products. She has said farmers need “trade, not aid,” and has called for Republicans in the Senate to pass a modern farm bill that will create long-term certainty for farmers instead of year-to-year band-aids.

Up to $11 billion in this package will be used for the Farmer Bridge Assistance (FBA) Program, which provides relief to U.S. row crop farmers. That includes rice, soybeans, corn, peanuts, wheat and others.

“FBA will help address market disruptions, elevated input costs, persistent inflation, and market losses from foreign competitors engaging in unfair trade practices that impede exports,” the USDA reported. “The FBA Program applies simple, proportional support to producers using a uniform formula to cover a portion of modeled losses during the 2025 crop year. This national loss average is based on FSA reported planted acres, Economic Research Service cost of production estimates, World Agricultural Supply and Demand Estimates yields and prices and economic modeling.”

Farmers who qualify for the FBA Program can expect payments to be released by February 28. Eligible farmers should ensure their 2025 acreage reporting is factual and accurate by December 19. Commodity-specific payment rates will be released by the end of the month.

“Crop insurance linkage will not be required for the FBA Program; however, USDA strongly urges producers to take advantage of the new OBBBA risk management tools to best protect against price risk and volatility in the future,” USDA reported.

The remaining $1 billion will be reserved for commodities not covered in the FBA program such as specialty crops and sugar, for example, though details including timelines for those payments are still under development and require additional understanding of market impacts and economic needs.

The $12 billion in farmer bridge payments, including those provided through the FBA Program, are authorized under the Commodity Credit Corporation (CCC) Charter Act and will be administered by the Farm Service Agency (FSA).