The Trump Administration plans a $12B MFP payment for farmers hit by tariffs, but the government shutdown is holding up the aid. USDA moved $13B from the CCC for the relief program.
12 Billion Farm Bailout All Teed Up

Trump Administration prepares another Market Facilitation Program (MFP) payment for farmers, but the federal shutdown and market uncertainty following the US-China truce complicate the timing and final amount of the massive trade aid package.

The Trump administration is actively preparing to launch a new, significant round of trade aid for the American farm sector, with an initial payment of up to $12 billion planned to address losses stemming from the president’s tariff policies. This planned relief, a program similar to the $28 billion farmer bailout issued during the first-term trade wars, is confirmed by multiple sources. Senator John Hoeven (R-N.D.) stated that a Market Facilitation Program (MFP) is “all teed up and good to go,” indicating the relief mechanism is fully prepared for deployment.

Crucially, the immediate release of the trade aid package is currently obstructed by the ongoing government shutdown. As reported by AgWeb’s Michelle Rook, USDA Deputy Secretary Stephen Vaden confirmed that the money cannot be dispersed until the federal government is fully reopened due to a lack of appropriations. Vaden emphasized that this delay affects all forms of federal assistance, including aid to farmers, highlighting the systemic bottleneck created by the lack of a budget.

The final scope and size of the trade aid package remain fluid, despite the initial $12 billion figure. Deputy Secretary Vaden suggested that the ultimate extent of the assistance, or “how many lanes that bridge has,” will be directly influenced by how the commodity markets respond to recent international trade developments, specifically the announced truce with China and subsequent export purchases of soybeans, sorghum, and meat. This suggests the administration may temper the bailout if market conditions improve sufficiently.

Adding a layer of complexity to the funding, the USDA recently transferred $13 billion from the Commodity Credit Corporation (CCC)—an account traditionally used to support U.S. agricultural products—to the Office of the Secretary. As reported by Government Executive’s Eric Katz, this move was intended to create a mandatory “Farmers Support Program” for tariff relief. However, the action has drawn scrutiny on Capitol Hill, as the USDA reportedly did not notify lawmakers of the fund transfer, over the objections of career staff who believed such notification was required.

Agricultural leaders and analysts, such as Bart Fischer, co-director of the Ag and Food Policy Center at Texas A&M, maintain that federal assistance is still necessary despite the reduction in trade uncertainty. Fischer notes that the agreement with China does not address the lingering problem of high input costs and the carryover effects of inflation from the last four to five years. Therefore, discussions between the Trump administration and Congress are expected to continue on both economic assistance and trade relief, recognizing them as separate but related issues vital to maintaining farm profitability.

Source: Find the complete report on the planned farmer trade aid and the government shutdown’s impact at Agriculture.com.

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