Springfield, IL — President Donald Trump has announced a new tariff aid package for U.S. farmers, including those in Illinois, as trade disputes continue to affect the agricultural sector. The newly announced $11 billion in aid for row crop farmers is less than half of the previous federal assistance provided during Trump’s first term.
According to the U.S. Department of Agriculture’s Economic Research Service, agricultural export losses from mid-2018 to the end of 2019 exceeded an estimated $27 billion. In response at that time, $23.1 billion in federal assistance was distributed to farmers but did not restore international trade relationships.
Illinois Department of Agriculture Director Jerry Costello II commented on the situation: “Tariffs are crushing farmers again. Financial losses are worse this time around, yet the aid package is 50% smaller,” Costello said. “We’re seeing repeated devastation with greater losses than Trump 1. It defies logic.”
There are also concerns regarding China’s commitments to purchase U.S. soybeans. While there have been claims about China agreeing to buy 12 million metric tons of soybeans this year, as of December 5 only 2.25 million tons had been purchased according to USDA data and the deadline has now been extended until the end of February.
Reuters reported that the U.S. Trade Representative’s office launched a new investigation into China’s failure to comply with obligations under the ‘Phase One’ trade deal signed in 2020.
Costello expressed skepticism about these developments: “The deadline extension is more smoke and mirrors,” he said. “Even if China made good on the purchase, which is proven unlikely, export totals remain far short of those prior to another manufactured trade war.”
Economists have noted that repeated agricultural aid packages can distort land values and influence decisions related to cash rents and equipment purchases.
Costello likened the current farming crisis to arson: “If someone set your house on fire and then borrowed your garden hose to attempt to extinguish the flames, would you thank them for their help? Because the expectation from Trump is that farmers should be grateful to him for offering a bailout to the crisis he created,” Costello said. “Illinois farmers want trade not aid.”
