HURON, S.D. — Farmers are cautiously welcoming the $12 billion assistance package President Trump announced, but many say it won’t fully offset losses tied to his trade policies.
On a South Dakota farm, Kevin Deinert opens the hatch of a silver grain bin and shows this year’s soybean harvest — the bin is full. In prior years his beans would have been sold to China by now; since 2019 China bought roughly 25 million metric tons annually from the U.S. But after tariffs and counter-tariffs, much of that business shifted to Brazil and other suppliers.
“The Chinese market evaporated,” Deinert says, noting that higher costs for fertilizer and other inputs — driven in part by tariffs on suppliers such as Canada and by inflation — have pushed many farms into the red. He calls the $12 billion package “meaningful” but doubts it will resolve all farmers’ concerns.
Conservative groups such as the Farm Bureau Federation welcomed the aid but urged more action. Missouri Farm Bureau President Garrett Hawkins called the bridge payments an important first step and asked for continued federal efforts to recalibrate trade strategies, open markets, boost domestic demand and strengthen long-term farm viability.
Other groups have been sharper in their criticism. State chapters of the National Farmers Union say the administration’s trade battles — including the first round of tariffs in 2018 and the more recent clashes with China — have caused serious damage in the Heartland. Doug Sombke, president of the South Dakota Farmers Union, said the administration is now bailing out farmers for harms created by its own policies. “He’s back at the fire and he’s trying to put it out with a garden hose,” Sombke said.
Agricultural lobbyists point to lost long-standing relationships abroad and sharply higher costs for inputs and equipment, alongside lingering pandemic supply-chain disruptions. Deinert, who also leads the South Dakota Soybean Growers Association, expresses a common sentiment: “We want trade, not aid.”
The administration reached a trade deal with China in November that pledges purchases of U.S. soybeans — 12 million metric tons by the end of February and 25 million metric tons over the next three years. If fulfilled, the purchases would roughly restore U.S. exports to pre-second-trade-war levels, but farmers remain skeptical. Deinert says he has heard reports of shipments moving to Asia again, but “we haven’t seen anything on paper” and many producers are only “trading on headlines.”
The White House says payments from the $12 billion package should hit farmers’ accounts in late February. Farmers must apply by Dec. 19 and are expected to learn their payment amounts in January. Officials also point to budget measures proposed to increase price supports for commodity crops such as soybeans and corn beginning late next year.
Timing is critical: farmers need to know incoming support to secure financing for seed and other spring planting supplies. John Kippley, an 80-year-old farmer near Aberdeen who also runs a tax-prep business, worries the aid may be too little and too late. “Banks are really nervous right now because they don’t know what’s going to happen,” he said, uncertain whether tariffs will increase or ease and concerned about strained relations with foreign buyers.
The condition of the farm economy has political implications with midterm elections approaching. States like South Dakota, a longtime Republican stronghold, will be closely watched as farmers and rural communities evaluate whether federal steps are sufficient to restore farm profitability and stable markets.