Washington DC [US], December 9 (ANI): US President Donald Trump on Monday announced a 12 billion US aid package for American farmers, moving to support a sector hit by tariffs and a trade dispute with China.

Trump unveiled the plan during a White House event attended by Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, several lawmakers and members of the farming community. He said the money to fund the package would come from government revenue raised through US tariffs.

'This relief will provide much-needed certainty to farmers as they get this year's harvest to market and look ahead to next year's crops, and it'll help them continue their efforts to lower food prices for American families,' he said while announcing the financial assistance.

Rollins said farmers can apply for the funding in the coming weeks, and that it will be disbursed by 28 February 2026. According to officials, roughly 11 billion US of the government assistance is set aside for the Department of Agriculture's Farmer Bridge Assistance programme, which will offer one-time payments to farmers for row crops.

As the administration outlined the support plan, Bessent emphasised stability for producers planning ahead. 'You've got to start financing for planning next year when things will be very good,' he told CBS News on Sunday.

The announcement comes against the backdrop of farmers losing billions of dollars in soybean revenue this year due to a boycott by China, which halted purchases in May in retaliation for new tariffs introduced by the Trump administration. China has been the largest buyer of US soybeans, purchasing more than half of all American exports over the last five years, according to the Iowa Farm Bureau.

Trump and Chinese President Xi Jinping reached a preliminary trade agreement in October, which the White House said involved the resumption of US soybean sales to China. Officials said in November that China would purchase at least 12 million metric tonnes of soybeans in the final two months of 2025. However, Chinese imports could still fall below typical levels, CBS News reported in November.

The trade dispute has compounded existing challenges for US farmers, who were already facing rising costs and shrinking profit margins. Farmers told CBS News that they are suffering major losses on corn, soybeans and cotton, with crop prices declining over the past two years, according to data from the American Farm Bureau Federation.

Bessent said on CBS News that domestic soybean prices have increased by as much as 15% since the agreement with China.

The administration began considering a financial relief package for farmers in October, with sources telling CBS News it could include more than 10 billion US in assistance. The proposal was delayed due to the 43-day US government shutdown, which ended in mid-November. (ANI)