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Farmers Question Bessent's Tariff Aid Promise Amid Shutdown Uncertainty

Farm groups are skeptical after Treasury Secretary Scott Bessent promised tariff relief "next week," despite a government shutdown and depleted USDA funds.

AgroLatam USA

Treasury Secretary Scott Bessent's announcement that farmers could see tariff relief "as soon as next week" has left many in agriculture questioning how such a program would work under current conditions. Multiple legal analysts warn the administration has no mechanism to release funds without congressional action, and the Commodity Credit Corporation (CCC)-once used to support producers during the Trump administration-is nearly exhausted.

A soybean industry source put it bluntly: "How are you rolling out something on Tuesday if the government is still shut down?" With USDA staff furloughed, there is little clarity on whether aid can actually reach farmers. Normal lines of communication in Washington remain frozen, adding to the sense of uncertainty in the countryside.

Reports suggest the administration is considering between $10 billion and $14 billion in aid, but farm groups argue the money would not cover the magnitude of recent losses. U.S. agricultural exports to China fell by more than $8 billion in FY2025, and USDA forecasts indicate they could decline another $15 billion in FY2026 compared to 2024 levels. Soybean producers, who have seen the sharpest drops, warn that short-term aid may do little to offset shrinking global demand and higher input costs.

Compounding the confusion is the fact that the announcement came from the Treasury Department rather than USDA. Agriculture Secretary Brooke Rollins, in media appearances the same day, made no mention of tariff assistance. For some farm groups, this raises questions about whether the plan is a serious policy initiative or political maneuvering. Still, Senator John Hoeven (R-N.D.) defended the administration's approach, saying it "sends a very clear message to the Chinese that we're going to keep our farmers in the game."

Meanwhile, the broader farm economy continues to wrestle with overlapping challenges. Dairy producers are lobbying for labor reforms after a recent ICE raid in Wisconsin highlighted workforce shortages. Animal health concerns are growing in Iowa, where avian flu has struck another commercial turkey flock. And in the meat sector, Tyson Foods agreed to pay $85 million to settle a pork antitrust lawsuit, joining other major packers in facing costly litigation.

At the same time, disaster assistance programs remain stalled by the shutdown. Secretary Rollins admitted on Fox Business that "we can't move any money out to these farmers. ... It is all really, really tough in the countryside." For producers already facing volatile commodity markets, the absence of reliable support programs underscores just how vulnerable farm incomes are to both political gridlock and international trade shifts.

Whether Bessent's comments signal genuine relief or merely serve as a negotiating tactic, the takeaway for farmers is the same: uncertainty prevails, and clarity is in short supply.

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