Trump Considers Tariff Funds for Farmer Aid
With 2025 farm revenues under pressure, the Trump administration is weighing a controversial move: using tariff revenue to deliver emergency aid to struggling producers.
As the 2025 harvest begins, pressure is mounting on the White House to deliver immediate financial relief to farmers. Commodity prices remain low, input costs high, and trade tensions unresolved. Amid rising distress in farm country, President Donald Trump is reportedly considering a high-stakes strategy: diverting tariff revenue to fund emergency farmer support.
The idea, floated publicly this week by Agriculture Secretary Brooke Rollins, comes as federal farm aid included in July's $66 billion "Big Beautiful Bill" remains months away from implementation. That delay, coupled with poor export demand-especially from China-has left many farmers fearing they won't survive to see the 2026 crop season.
"USDA is monitoring markets daily," Rollins said at the NASDA conference in Arkansas. "We are working closely with Congress to assess how much support is needed this fall."
During Trump's first term, the USDA used the Commodity Credit Corporation (CCC) to deliver up to $30 billion annually in trade mitigation payments, primarily benefiting soybean producers hit hard by retaliatory tariffs. But current estimates suggest that number may fall short in 2025, especially with no new soybean orders from China reported as of mid-September.
According to Senate Ag Chair John Boozman (R-Ark.), all options should be explored. "The farming community understands we've been there for them in the past," Boozman said. "We're pushing the administration to use every tool it has."
The problem? Tariff revenue is controlled by Congress. While Trump could potentially redirect certain discretionary funds under a national emergency declaration, using general treasury funds derived from tariffs would likely require congressional approval-a tall order in today's polarized environment.
Despite Republican control of the White House and both chambers of Congress, internal party divisions threaten to derail any straightforward farm relief package. Freedom Caucus members are pushing back against additional spending unless it's offset by deep cuts-especially after the July bill already slashed $186 billion from nutrition programs and $1.8 billion from conservation.
President Donald Trump, seen tossing hats to supporters at a 2023 Farmers for Trump rally, is now seeking to rekindle rural support by "drawing up plans" to redirect tariff revenue into a new farmer aid program for 2025.
No formal bipartisan negotiations have occurred, and with an Oct. 1 deadline looming to avoid a government shutdown, Trump recently said Republicans "should not even bother" negotiating with Democrats.
That stance could leave rural America in limbo, just as harvest ramps up and financial pressures peak.
Rep. Angie Craig (D-Minn.), ranking member on the House Ag Committee, offered sharp criticism: "Input costs remain high. Prices are low due to high yields. We've lost markets farmers worked decades to develop - and the president is continuing his trade wars."
Craig and others argue that the current administration is repeating past mistakes by relying on tariffs as economic leverage, despite evidence that retaliatory measures have hurt U.S. exporters.
While Trump officials argue that tariffs boost domestic demand and strengthen U.S. negotiating power, many economists warn the opposite: that tariffs reduce global trade, raise consumer costs, and strain employment. Using tariff revenue to fund short-term relief could create long-term economic drag.
Former President Donald Trump holds up a Farmers for Trump hat during a campaign event Friday, July 7, 2023, at the Mid-America Center in Council Bluffs, Iowa.
With few legislative options left, Trump could declare an agriculture-related national emergency, enabling limited reallocation of funds without congressional consent. Legal scholars say this would be unprecedented-but not impossible, given the number of emergencies already declared for border enforcement, energy production, and mining.
For now, U.S. farmers are stuck in a holding pattern, watching both markets and Washington for signs of action.
"We've made clear to the administration how serious this is," Boozman emphasized. "They have tools-they just need to use them."