Will Trump’s $12 billion bailout solve the farm crisis?
Agriculture sector says it wants trade, not aid
President Donald Trump’s $12 billion bailout of American farmers will provide at least temporary relief from their struggles. But critics say the underlying problems, including his tariffs, still have not been solved.
Trump’s trade wars have “bludgeoned the already struggling U.S. agricultural sector,” said Axios. Farmers were staggering under the weight of “falling commodity prices and rising production costs,” but the president’s tariffs did not help. China stopped buying American-grown soybeans as retaliation, “crushing the largest export market for American farmers.” Now more than half of U.S. farms are “losing money.” The newly announced bailout “will provide much-needed certainty” to the sector, Trump said. Others are not so sure. A “one-time payment is not a long-term fix,” said Sen. Amy Klobuchar (D-Minn.).
Many farmers see the bailout as a “welcome stopgap,” said Fortune. But they do not believe it will “solve the agricultural industry’s problems.” The payments from the Trump administration are “not the ultimate solution we’re looking for,” said Charlie Radman, who grows corn and soybeans in Minnesota. Many of Radman’s colleagues say they want “trade, not aid.” American farmers “need more demand for our product,” said Iowa corn farmer Dan Keitzer to Fortune.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What did the commentators say?
Aid to farmers is Trump’s solution to a “self-created trade mess,” said The Washington Post editorial board. It is not just that the tariffs have cut off export markets for American-grown foodstuffs. They have also “driven up input costs for farmers,” who now must pay $100-a-ton more for fertilizer than they did a year ago. The president’s aid package will only partly offset the $44 billion that U.S. farmers are expected to suffer this year. Americans get “higher food prices and fewer options” while the farmers who feed them are doing worse than if Trump had “never imposed tariffs.”
The bailout is proof tariffs do not work, “but don’t expect the White House to think too hard about it,” said Eric Boehm at Reason. Farmers need aid because Trump’s trade wars are “creating higher prices for farmers” while also “making American agricultural products less competitive” in worldwide markets. Trump should have “learned this lesson already.” His first-term tariffs ended up forcing a $28 billion bailout of American farmers. History is repeating itself “with the same predictable results.”
What next?
American farmers “aren’t out of the woods yet,” said Foreign Policy. After the bailout was announced, Trump threatened new tariffs on Canadian fertilizer. That would “risk further straining” the finances of American farmers who use the product. And the president shows no signs of abandoning his overall tariff-driven approach to trade. The import fees have “greatly enhanced” U.S. national security, the president said on Truth Social. That will not come as good news to farmers who support Trump, but also who want to sell their products rather than live with uncertainty. They want “export market access, not handouts,” said Cornell University economist Chris Barrett.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.
-
Political cartoons for January 20Cartoons Tuesday's political cartoons include authoritarian cosplay, puffins on parade, and melting public support for ICE
-
Cows can use tools, scientists reportSpeed Read The discovery builds on Jane Goodall’s research from the 1960s
-
Indiana beats Miami for college football titleSpeed Read The victory completed Indiana’s unbeaten season
-
Can Starmer continue to walk the Trump tightrope?Today's Big Question PM condemns US tariff threat but is less confrontational than some European allies
-
Will Democrats impeach Kristi Noem?Today’s Big Question Centrists, lefty activists also debate abolishing ICE
-
Trump, Senate GOP block Venezuela war powers voteSpeed Read Two Republicans senators flipped their vote back amid GOP pressure
-
White House ends TPS protections for SomalisSpeed Read The Trump administration has given these Somalis until March 17 to leave the US
-
Why is Trump threatening defense firms?Talking Points CEO pay and stock buybacks will be restricted
-
Kelly sues Hegseth, Pentagon over censureSpeed Read Hegseth’s censure was ‘unlawful and unconstitutional,’ Kelly said
-
Do oil companies really want to invest in Venezuela?Today’s Big Question Trump claims control over crude reserves, but challenges loom
-
What is China doing in Latin America?Today’s Big Question Beijing offers itself as an alternative to US dominance
