Trump administration seeks $11.1 billion farm lifeline
Washington, July 22
The Trump administration asked Congress for $11.1 billion in agricultural assistance, warning that rising production costs, falling farm income and natural disasters were placing severe pressure on American farmers.
The request includes $10 billion in temporary economic assistance for row-crop and speciality-crop producers in 2026. Another $1.1 billion would help farmers recover from catastrophic freezes during the previous winter.
Agriculture Secretary Brooke Rollins presented the proposal before the Senate Appropriations Committee as part of President Donald Trump's broader $87.6 billion supplemental funding request.
"This supplemental is so important. It provides a bridge and extends a hand to Americans who need it," Rollins said.
She said producers continued to face financial pressure while the administration pursued trade agreements, expanded biofuel markets and sought to move fertiliser and other agricultural production back to the United States.
Between 2020 and 2025, seed costs rose 19 per cent, crop protection expenses increased 30 per cent and fertiliser costs climbed more than 50 per cent, Rollins said. Fuel and oil costs increased nearly 33 per cent, electricity rose 36 per cent and repair and maintenance expenses climbed 27 per cent.
Farm income fell by more than $90 billion between 2023 and 2024, one of the largest annual declines on record, she said. The US agricultural trade deficit reached $50 billion.
Republican Senator Mike Rounds said farmers were producing crops at a loss. He put the projected 2026 loss per acre at $131 for corn, $342 for cotton, $114 for wheat and $80 for soybeans.
"Farmers and ranchers are facing production costs that exceed market returns," Rounds said.
Senate Appropriations Committee Chair Susan Collins said the United States had lost 200,000 farms during the past decade. Farmers were being squeezed by falling commodity prices, labour shortages, trade disruptions, pests, disease and increasingly volatile weather, she said.
Lawmakers from both parties pressed Rollins to support assistance for farmers affected by disasters not covered by the administration's proposal.
Collins questioned why the request provided $1.1 billion for the most recent freeze but did not cover earlier agricultural losses caused by drought and excessive rainfall in other states.
"We are obviously 100 per cent in support of any sort of disaster relief program for our farmers, whether it's hurricane or tornado, drought, freeze, etc," Rollins said.
The administration said longer-term measures were beginning to improve the agricultural economy. Rollins said the agricultural trade deficit had declined by 42 per cent in one year and that 19 new trade agreements had been secured.
US agricultural assistance programmes have historically combined crop insurance, disaster payments and temporary support during periods of depressed prices or trade disruption. Congress has frequently included emergency farm assistance in broader supplemental spending legislation.
Global fertiliser markets are closely connected to energy costs and international shipping. Changes in US agricultural output and commodity exports can also influence food and animal-feed prices in overseas markets, including major import-dependent economies in Asia.
— IANS
Reader Comments
As an American living in India for work, this hits close to home. My uncle is a corn farmer in Iowa, and he's been struggling with exactly these issues—fertiliser costs up 50% is no joke. It's eye-opening to see how both countries' farmers are squeezed by similar forces: rising inputs, volatile weather, and trade uncertainties. I hope this package helps, but it feels like a band-aid on a deeper structural problem.
The US losing 200,000 farms in a decade is staggering. Here in Punjab, we've seen similar trends with small farmers giving up and migrating to cities. Both countries' agricultures are in trouble, but the solutions keep being short-term. The talk of 'moving fertiliser production back to the US' reminds me of India's Atmanirbhar Bharat push—self-reliance sounds great, but these supply chains are global for a reason. Hope both nations figure out sustainable policies.
Reading this as a Canadian farmer—we're in the same boat. Our input costs have skyrocketed too, and cross-border trade disruptions with the US don't help. The $50 billion trade deficit mentioned here is a sign of how messed up global ag markets are. I appreciate the bipartisan concern in the Senate hearing, but where's the long-term vision? Subsidies won't fix climate volatility or broken supply chains.
My heart goes out to American farmers. I'm a sugarcane farmer in Maharashtra, and I know what it's like to produce at a loss when input costs are high and prices are low. Our government talks about MSP and loan waivers, but we need real income support like this $10 billion proposed here. The difference is, our farmers don't have crop insurance that actually works when disasters strike. We can learn from their disaster relief systems.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.