President Donald Trump announced that his administration plans to use tariff revenue to fund a new farm aid package, offering direct payments to producers hit by trade uncertainty and declining commodity markets.
Speaking from the Oval Office, Trump said farmers would be compensated as his tariff policies take effect:
“We’re going to take some of that tariff money that we made, we’re going to give it to our farmers, who are, for a little while, going to be hurt until the tariffs kick into their benefit,” Trump said. “We’re going to make sure our farmers are in great shape.”
Congressional Approval Needed
Administration officials indicated that Congress must authorize the use of tariff revenue for this program, with hopes that lawmakers will include it in the November 21 omnibus package. If approved, cash payments to farmers could begin in early 2026.
The farm aid package comes as top export producers — especially corn and soybean farmers — face mounting pressure from trade disputes and falling prices. Farmers have expressed support for the plan, saying compensation is fair if they are being used as “international policy tools” during trade negotiations.
Legal Questions Remain
However, questions linger about whether Section 32 authority, which is funded by 30% of tariff receipts, can legally be used for direct payments to farmers. Current law limits only $350 million of Section 32 funds for restoring farmers’ purchasing power, with most funds historically dedicated to nutrition programs and commodity purchases.
Legal experts warn that the issue could face challenges in the courts, especially given rulings on the legality of some tariffs imposed under emergency powers.
China’s Position on Soybean Purchases
Meanwhile, China signaled this week that it will not resume U.S. soybean purchases unless Washington removes what it calls “unreasonable tariffs.” China remains the world’s largest soybean buyer but has turned to South American suppliers amid the ongoing trade dispute, leaving U.S. farmers without a key export market.
Trade groups warn that without resolution, American farmers risk losing billions of dollars in potential soybean sales.
