Farmer Aid Reportedly Delayed by Government Shutdown

Politico’s Grace Yarrow reported that “the Trump administration has pushed back its plans to roll out economic aid for farmers this week due to the government shutdown, according to four people familiar with the talks.”

“The Office of Management and Budget has readied between $12 billion and $13 billion to be allocated from an internal USDA account, some of which could be used to fund the bailouts for farmers hurt by President Donald Trump’s tariffs and other economic headwinds, according to the four people with knowledge of the decision, all granted anonymity to share private details,” Yarrow reported. “No final decision has been made on just how much of the money will go toward farm aid, the people said, and the package won’t be coming out any time soon. The timeline has been further delayed because some USDA political appointees have been furloughed during the shutdown.”

“Officials have been weighing using tariff revenue, USDA’s Commodity Credit Corporation fund and other alternative methods to alleviate farmers’ financial stress,” Yarrow reported. “There’s precedent: Trump tapped USDA’s internal fund to dole out $28 billion worth of bailouts during his first-term trade war with China.”

“The administration was expected to announce some form of support for farmers Tuesday, as Treasury Secretary Scott Bessent previously teased, but that was put on pause due to ongoing shutdown negotiations,” Yarrow reported. “Still, some of the people familiar expect that Trump could go rogue and announce next steps on bailouts this week.”

Aid Could Involve Multiple Rounds

Agri-Pulse’s Oliver Ward, Philip Brasher, and Noah Wicks reported that “the Trump administration has quietly moved some $13 billion from a fund used to deliver tariff assistance to farmers in President Trump’s first term to the Agriculture Secretary’s office.”

“On Sept. 28, the Office of Management and Budget greenlit a $13 billion transfer from the Commodity Credit Corporation to the Office of Secretary Brooke Rollins,” Ward, Brasher and Wicks reported. “Asked about the move, the top Senate Ag Committee appropriator Sen. John Hoeven, R-N.D., wouldn’t say if the money was linked to a forthcoming announcement on tariff assistance. But he told Agri-Pulse, ‘We’ve been working on this, so probably you’re not too surprised.’”

“Take note: Hoeven said on Monday that the most likely path forward for tariff assistance would involve multiple steps. The administration, he said, would likely announce some unilateral measures while Congress worked on legislation,” Ward, Brasher and Wicks reported. “‘It won’t be just a one-shot deal,’ Hoeven said. ‘The CCC is already ready to go. That’s done. That’s squared away, so the administration doesn’t need more help there.’”

“The CCC’s borrowing authority has been severely depleted, with some sources saying there could be as little as $4 billion remaining,” Ward, Brasher and Wicks reported. “‘That’s why it’s not going to be just one item,’ Hoeven said. ‘We’ll probably be doing more before the end of the year, which will require, actually, some legislative assistance as well.’”

How Much Could the Aid Total?

Reuters’ Leah Douglas and Bo Erickson reported before the delay that the initial round of farmer aid could potentially total “up to $15 billion, according to sources familiar with the matter.”

“One of those sources said the bailout would total somewhere between $10 billion and $15 billion, and would be a necessary bridge to get farmers through the harvest months and could be followed by additional aid,” Douglas and Erickson reported. “The funds would go to soybean farmers affected by the China trade spat, as well as other types of commodity farmers, though the exact details were not yet determined, that source said.”

“A U.S. Department of Agriculture spokesperson said farmers are benefiting from lower taxes, trade deals and updates to farm programs included in Trump’s July tax-cut and spending bill,” Douglas and Erickson reported. “‘President Trump has made it clear he will not leave farmers behind, so USDA will continue to assess the farm economy and explore the need for further assistance, however, there is nothing new to share at this time,’ the spokesperson said.”

Farmer Aid Reportedly Delayed by Gov’t Shutdown was originally published by Farmdoc.