The package includes $11 billion in one-time payments to crop farmers.
ABC News reports Trump says $12 billion bailout plan for farmers will come from tariff revenue
President Donald Trump announced a total $12 billion in funding to help American farmers during an event on Monday, and said that it would come from tariff revenue.
“I’m delighted to announce this afternoon that the United States will be taking a small portion of the hundreds of billions of dollars we receive in tariffs. … and we’re going to be giving and providing it to the farmers in economic assistance. And we love our farmers,” the president said.
The package includes $11 billion in one-time payments to crop farmers through a new Department of Agriculture bridge payment program. The remaining funds will then go to other crops not covered by that program.
Impact of Tariffs on Farmers
The aid package comes as the U.S.-China trade war has hit soybean farmers especially hard. Through most of this fall, during a bumper harvest season, China had blocked all purchases of soybeans from the U.S.
China was the biggest buyer of U.S. soybeans in 2024, accounting for $12.64 billion in sales, according to the USDA.
During Trump’s high-stakes meeting with Chinese President Xi in late October, the U.S. and China announced a framework trade agreement that included a deal on soybeans. China agreed to purchase 12 million metric tons of soybeans in the final two months of this year and 25 million metric tons in 2026, 2027 and 2028 — on par with levels before the trade war.
So far, China has purchased about 2.2 million metric tons of soybeans from the U.S. since the end of October, USDA data shows.
Farmer Bailout Step-by-Step
- Launch a trade war.
- China retaliates.
- Soybean exports plunge to zero.
- Propose a “one-time” farmer bailout similar to the “one-time” farmer bailout in his first term.
- Fund the bailout with money collected from US taxpayers via tariffs which are a tax on US consumers and businesses.
- Ignore everyone else damaged by these preposterous tariffs as if only farmers matter.
Please note the huge TACOs on tariffs. The average tariff rate is now about 18 percent or so, down from 50-100 percent announcements.
With tariffs down so much, so fast, TWS and MAGA parrots proclaim “See, tariffs did not cause huge price hikes.”
Since parrots cannot think, I will spell it out. The small impact of tariffs on goods is due to tariff front running, huge TACOs, and stockpiling goods ahead of the tariffs.
The impact is smaller but is present and was delayed.
The bigger impact that parrots don’t like to discuss is the destruction of small business employment.
No Inflation, Affordability Is a Hoax
Meanwhile, please note that Trump says there is “virtually no inflation” and “affordability is a hoax”.
To combat the alleged hoax, Trump Announces Two New Task Forces Will Investigate Food Prices
The DOJ and the FTC will each launch a witch hunt on high food prices.
Given there is no inflation, it’s amusing Trump has started two independent missions to find inflation.
The logical person might note the irony and contradiction of the setup, but I may need to remind you that parrots cannot think logically.
Trump Brags About Higher Beef Prices
In case you missed it, please note that Trump is bragging about higher beef prices and how ungrateful ranchers are for that.
Truth Social Link: The Cattle Ranchers, who I love, don’t understand that the only reason they are doing so well, for the first time in decades, is because I put Tariffs on cattle coming into the United States, including a 50% Tariff on Brazil. If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible! It would be nice if they would understand that, but they also have to get their prices down, because the consumer is a very big factor in my thinking, also!
So …
- There is no inflation
- Tariffs don’t cause inflation
- But Trump literally chastises ranchers that beef prices are high because of his tariffs
- Now to get beef prices down, Trump wants to reduce tariffs he put on that drove the price of beef up.
If you think that story seems to make no sense, then you are overlooking the obvious.
Q: What’s the obvious?
A: Trump is always right, no matter how contradictory it seems.
Trumpian Dissonance
Trumpian dissonance explains the simultaneous opinion that tariffs both cause and do not cause inflation.
Trumpian dissonance explains why its logical to go on a crusade to find inflation while maintaining there is none.
Trumpian dissonance explains why “affordability is a hoax.”
Everything makes perfect sense in the Trump alternate universe.
Related Posts
December 5, 2025: Welcome to Tariff Complexity Hell, No One Knows What Trump Will Do
Tariffs are a tax, and complexity adds to that tax.
December 3, 2025 : Small Businesses Drop 120,000 Jobs in November, ADP Total Down 32,000
It’s another grim month according to ADP.
Not a bit of this is a surprise to any thinking person. Trump owns all of it for overpromising and underdelivering.
But that’s OK because Trump Adopts Chicago Cubs’ Perpetual Message, “Wait Till Next Year”
President Trump’s advisers are counseling him to refine his economic message with a pitch to voters aimed at easing their anxiety about weak jobs growth and stubborn inflation.
Their new mantra: Just wait until next year.
Wait Till 2026” is a fundamental mistake. When 2026 is bad, the message will have to change.
The beauty of a more Cub-esque “Wait Till Next Year” is the slogan never has to change.
However, given that affordability is a hoax, things are glorious now. There should be no reason to have to wait for anything.
Regardless, “wait till 2026” is now “wait 22 days”. Feelin’ lucky?
Health Care Inflation Bomb
In case you missed it, please see Health Care Inflation Bomb Makes the Fed’s 2 Percent Target Almost Impossible
Let’s discuss 2026 health care premiums and what they mean to the Fed’s preferred measure of inflation.
I expect health care will add 1.5 percentage point to PCE inflation next year. If so, the Fed will start 2026 in a big hole.
See above link for the math and health care details.
I wonder how many of my fellow pro-Trump voters in 2024 thought we were licensing a national economic planner? If I’d suspected my choice was socialist Dems or El Duce, I’d have stayed home. Are we really this far from liberal capitalism? If so, what the next stage might be, along with how we get there, hardly seems to matter: there may be no upside.
I believe it was President Reagan that said when government fixes one problem they create two more. Trump is proving him right.
He’ll likely need to use some of the money to bail out the tourism industry he’s about to kill https://www.dailymail.co.uk/news/article-15369957/Trump-foreign-tourists-social-media-history.html
Wait, I thought everyone was getting $2,000 tariff dividend checks? Now this?
I think RFK’s brain eating worm has infested Trump’s already age addled mind.
Trump is Schrödinger’s cat.
It won’t even begin to pay for the real damage the Republican party is doing to farmers. Avoiding 1.5 degrees centigrade is pretty much in the rearview mirror. Motoring on to 2 degrees and maybe beyond. The country has elected an anti-science imbecile and his anti-science party full of imbeciles. CO2 is plant food!!!! The imbecility is simply mountainous. People have no idea what is coming.
No bailouts. These farmers voted for this. Let them go bankrupt.
It’s a delicious idea. Unfortunately you can’t eat it.
Lost in the discussion – Most farmers run multimillion dollar business and have no idea how to build or read their balance sheet or fertilizer spread scripts.
The main issue is machinery purchase to avoid taxes with the 179 Depr Election and they can’t cash flow it even in good times.
Brazil in the next few years will expand the same acreage as Iowa/IL combined.
The US fixates on Yield of soybeans. The higher the yield the lower the protein and oil. China buys protein and oil, not bushels.
Brazil gains 10 percent just on oil/protein content due to their location on the earth in re to sunlight.
The US does produce a better product for clean grain. Brazil is improving.
Correct, the higher oil content of Brazilian beans is preferred by the Chinese. Brazil also are using freshly deforested land for raising their crops. This reduces the need for fertilizers.
Sadly they are depleting this land of its organics quickly by raising row crops and having to abandon it for newly deforested land. Much of Brazilian farming is marginally sustainable.
Improvements are being made in land management…
It appears that we gave back the farmers the lost money on soybeans this season, as a New $35 Billion dollar deal was signed with China for Soybeans, and delivery by early 2026. As well as more deliveries over the 3-Year Deal.
China is not fulfilling this years alleged purchases negotiated by our weak paper tiger. It is strange to contemplate anyone is foolish enough to take Trump seriously.
The Chinese are laughing as the soy pours in from Argentina and Brazil.
Here at home? Corn farmers are having trouble finding storage for corn, storage is full ~ of higher value soy.
>>>
Sounds like its time to get the ethanol plants cranked up to 11 🙂
the amerikan farmers in heartland pump out mostly trash food. more like poison. glad i live in a region with many very small organic farmers.
Well they are most certainly still buying, and the agreement is not dead, or this is all pretend…
Despite the mixed comments, China is still buying U.S. soybeans, a sign there is an agreement with China. USDA confirmed another 4.85 million bushel sale to China, which is 132,000 MT.
An agreement with China is similar to an agreement with Trump. It is means nothing.
We have been down this road many times. You will figure it out eventually.
12 MT by end of 2025 has turned into 2 MT. A small amount to give you hope till the S American harvest comes in.
my score card on this shell game is head spinning
Trump’s $28 Billion Trade War Bailout Is Overpaying FarmersBy Mike Dorning
December 4, 2019,
Trump’s $28 Billion Trade War Bailout Is Overpaying Farmers – Bloomberg
He’s a pyromaniac who moonlights as a firefighter.
He’s a sadistic child with a magnifying glass setting ants on fire with the sun.
In South Boston, back in the day, you could run across some boys doing that on nearly every patch of grass they could find! Also pulling legs of grass hoppers and placing them on an ant hill. Did you grow up as a boy or girl? That does matter…
Thank goodness … that the hundreds of thousands and millions of trillions of dollars of promised foreign investment into the USA and its business enterprises …. include ‘cake trees producing the most delicious cake’ … from an anonymous tariff-pressured donor. When the president exhorts the farmers and the general electorate to eat the delicious cake from the donated cake trees in his affordability hoax tour, voters will finally see the light of day …
Trump wants to increase tariffs on Canadian Potash imports that farmers need. He says that it is to encourage more potash production in the US.
The US currently produces 0.4 MMT of potash per year. It would take a decade to increase this even by a small amount.
Our farmers import the remaining 6-12 MMT of potash that they need each year. 80% of that potash comes from Canada.
BHP is building a new potash mine in Saskatchewan. It started construction in 2021 and will be operational by 2027. 6 years and $7.5 billion invested. Why in Canada? Because that is where the potash is. It will produce up to 4 MMT per year in phase 1. And another 4 MMT if they build phase 2.
The US simply cannot produce enough potash domestically. No matter how high the tariff. Better to buy it from our closest and most stable trading partner. Stupid to tariff it.
The Donald is showing how to bribe a beautiful constituency bigly!
Waste of cash… he owns those simps.
less than the medicaid fraud savings
Of course is less sleepy trump will serve them tacos before any money is delivered…
“We had to burn the village to save it.” — President Donald J. Trump
Two months before the 2008 financial crisis hit, Phil Gramm famously said Americans were having a “mental recession” and “Thank God the economy is not as bad as you read in the newspaper every day.”
I noticed the MSM has been running lots of stories lately to “prove” the economy is not as bad as people think.
CNN.com right now: “A number of factors are making people feel lousy about finances, and most of them are messing with our minds more than our wallets”
So the “mental recession” argument is being made once again, which probably signals another financial crisis is about to happen.
Poor Campbell’s Soup. They are sinking because of Trump’s Tariffs, NOT, repeat NOT because “they make slop for poor people”.
It will be interesting to see how long it takes Republicans in the House (and Senators whose term ends in 2026) to distance themselves from Trump in their re-election bids.
Just about as long as their voters remember that their representatives folded to trumps will
“Trumpian dissonance” = spot on. And unfortunately too difficult a concept for the Maga crowd.
George Orwell called it “doublethink.” He wrote that in the year 1949.
It will make them angry, even if they don’t understand it, so they’ll kind of get it.
Approval ratings basically unchanged! Trumps supporters still believe he will come through for them. And maybe the check will satisfy some needs.
How to buy approval ratings with worthless words in 3 simple steps:
Oh my god, this is hilarious and has me in tears laughing.
Congrats, you just earned another 3-Star Mishelin award on this post for pure comedic genius.
I am reposting a comment below here I just made in last post on China & soybeans.
China played Trump like a chump, not buying soybeans.
https://www.cnbc.com/2025/12/09/china-buys-us-soybeans-trump-trade-agreement.html
There’s an old saying in Tennessee – I know it’s in Texas, probably in Tennessee – that says, fool me once, shame on – shame on you. Fool me – you can’t get fooled again. -George W. Bush (needs to teach Trump a thing or two).
W the dumber bush, seems like a great scholar compared to my hometown hero, TACO boy.
TACO is gaining on W as a war criminal too, still a ways to go there but confident he’ll eventually make it.
Hey, those tariffs are costing me, too. Hook a brother up! I’ll settle for 1/2 mil.
So his genius plan is to impose import taxes on manufacturers, the very sector he claims is going to experience a renaissance due to his tariff policies, and then take that money from those companies and subsidize farmers. I’m in awe of his economic astuteness.
And the best part is farmers will tell us how awesome they are as self-made men not dependent on the government for anything. Fits perfectly well within the MAGA mindset of contradictory logic.
farmers have generally been big government bootlickers. since the prairie populists of long long ago. they lapped up the rural electrification and CCC etc………too. they just pretend to be independent types. reality is so different from perception and acting.
Everybody has a hand out to the government. They just complain about everyone elses hand.
Same as first term
4D chess. have faith kids. TACO is a genius and knows the art of the deal. he’s a bonafide businessman. the apprentice was a hit reality teeveeeeee show. the dirty hicks believed it was real. now, that comedy, is worth the price of the destruction.
Vintage taco.