WASHINGTON (TNND) — President Donald Trump’s recent visit to Iowa comes as farmers nationwide start the 2026 planting season after years of losses, low commodity prices, high input costs, and tight margins. Though Trump made his support clear for farmers during the event in Clive, Iowa, citing billions in aid that was passed to support them.
Back in December, the Trump administration has unveiled a $12 billion economic aid package aimed at providing relief to American farmers grappling with financial losses from the 2025 crop year. The U.S. Department of Agriculture (USDA) announced that $11 billion of the package will be directed to row-crop producers through the Farmer Bridge Assistance (FBA) program. This initiative is designed to offer short-term cash-flow relief rather than fully compensating farmers for their losses.
WASHINGTON, DC – JANUARY 28: U.S. President Donald Trump delivers remarks during the Treasury Department’s Trump Accounts Summit at Andrew W. Mellon Auditorium on January 28, 2026 in Washington, DC. “Trump Accounts” are a portion of recently passed tax and spending legislation where the federal government will deposit $1,000 into investment accounts for every child born between 2025 and 2028 once parents sign their children up while filing their income taxes.{ } (Photo by Win McNamee/Getty Images)
How will the aid be dispersed?
Despite being marketed as broad relief, the aid package does not benefit all farmers equally. Most of the funds are allocated to row-crop producers in the Midwest and South, with corn, soybeans, and wheat receiving the largest shares. Corn producers are set to receive approximately $4.3 billion, soybeans $2.5 billion, and wheat $1.9 billion. Collectively, the Midwest and Corn Belt states will receive about 64% of the total funds, according to the American Farm Bureau Federation.
In contrast, only $1 billion is reserved for specialty crops and sugar, a point of criticism as this amount falls short of covering losses in the specialty crop sector, which faces high labor and input costs. The American Farm Bureau Federation notes that while the aid helps farmers stay afloat, it does not address the underlying issues of low prices, high costs, and thin margins. Even supporters of the program acknowledge it as a temporary relief rather than a long-term solution.
Temporary solution
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The USDA modeled losses nationwide using various reports and projections to determine flat, per-acre payments for each covered crop. However, the program does not cover losses already incurred by farmers, leaving the sector still facing multi-billion-dollar deficits annually. The FBA program is intended as a temporary measure to help farmers remain solvent until longer-term policy changes are implemented in fiscal year 2026.