Farmers are now finding out the amount of aid they can anticipate receiving from a that was announced earlier this month.
The U.S. Department of Agriculture provided information on Wednesday regarding the amount of aid per acre farmers can expect for each row crop. The details came after most farmers had already met with their bankers to secure financing for next year’s crops and ordered the seeds and fertilizer they need. However, officials have pledged that the payments will arrive by the end of February.
have been particularly hard hit by Trump’s trade war with China, which following Trump’s announcement of tariffs this spring. China is the world’s largest buyer of soybeans. This aid package is expected to help farmers withstand trade disruptions until China under an and until provisions of Trump’s large budget bill take effect later this year.
Soybean farmers will get $30.88 per acre while corn farmers will receive $44.36 per acre. Another crop severely affected when China stopped purchasing was sorghum, with those farmers getting $48.11 per acre. The amounts are based on a USDA formula related to production costs.
Farmers say they need more buyers for their crops
But farmers state that the aid as they continue to grapple with soaring costs of fertilizer, seeds, and labor, making it difficult to make a profit currently. Some agricultural trade groups have expressed concern that thousands of farmers might go out of business, while others believe most farmers have the financial resources and equity required to survive.
Kentucky soybean farmer Caleb Ragland, who recently served as president of the American Soybean Association, stated that the aid is ‘a Band-Aid on a deep wound. We need competition and opportunities in the market to brighten our future.’
Jed Bower, President of the National Corn Growers Association, also urged the Trump administration to focus on developing additional uses for their crops. Farmers will benefit from having more buyers whether it is for ethanol and animal feed at home or for international markets.
“Corn growers have been warning that farmers have faced multiple consecutive years of low corn prices and high input costs,” Bower said. “While this financial assistance is helpful and appreciated, we urgently need the administration and Congress to develop markets in the United States and abroad that will provide growers with more long-term economic stability.”
Agriculture Secretary Brooke stated that is the goal and pledged to continue working to open new markets while strengthening the safety net for farmers.
Minnesota Soybean Growers Association President Darin Johnson said the aid amount for soybeans was less than farmers had hoped, so more assistance might be needed, although this package will help.
Most farmers remain loyal supporters of Trump even after the disruptions caused by the trade war. They generally support many of his other policies and believe they will eventually get a better trade deal.
White House and farmers encouraged by China’s purchases
These aid payments will total $11 billion for row crop farmers growing corn, soybeans, wheat, sorghum, and other crops. Another $1 billion has been earmarked for specialty crops and sugar, but the administration hasn’t released details of aid for those crops.
After Trump met with Chinese leader Xi Jinping in South Korea in October, the White House said Beijing had promised to buy at least 12 million metric tons of U.S. soybeans by the end of the calendar year, and 25 million metric tons per year for each of the next three years. Officials have stated that China is on course to meet the 12 million metric ton goal by the end of February.
As of Dec. 18, China had purchased about 6 million metric tons of soybeans, according to the latest USDA weekly report. Separately, the federal agency reported that China had since bought at least three additional batches totaling 600,000 metric tons.
Beijing has not yet confirmed any commitment to buying 12 million metric tons of soybeans this season, but the Chinese embassy in Washington said earlier this month that “agricultural trade cooperation between China and the United States is proceeding in an orderly fashion.”
However, the recent increase in international purchases is encouraging for farmers, said Tim Lust, CEO of the National Sorghum Producers, who has seen more than 1 million metric tons of sorghum purchased in just the past few weeks. Like soybeans, more than half of the sorghum crop is exported annually, with China traditionally being the largest buyer.
The aid payments will be limited to $155,000 per farmer or entity, and only farms with adjusted gross income less than $900,000 will be eligible. During the first Trump administration, several large farms found ways to bypass the payment limits and .
The USDA says the average size of the 1.88 million farms nationwide last year was 466 acres, but many farmers are much larger as larger operations have continued to acquire neighboring farms over time.