USDA Releases Details of Long-Awaited Farm Aid Package
Highlights
- The U.S. Department of Agriculture (USDA) will provide economic relief to farmers impacted by trade disruptions and rising production costs, with $11 billion allocated to the Farmer Bridge Assistance Program for row crop producers and $1 billion for specialty crops, all coming from USDA's Commodity Credit Corporation.
- Farmers must verify 2025 acreage reporting by Dec. 19, 2025, to qualify. Commodity-specific payment rates will be announced by the end of the year, and payment issuance is expected to start by Feb. 28, 2026.
- The $1 billion remaining in the aid package will support specialty crops such as fruits, nuts, vegetables and horticulture, although details on this assistance are not available.
The U.S. Department of Agriculture (USDA) on Dec. 8, 2025, released details on the much-anticipated $12 billion economic aid package it is providing to American farmers "in response to temporary trade market disruptions and increased production costs."
Agriculture Secretary Brooke Rollins indicated that $11 billion of the aid will go toward the Farmer Bridge Assistance (FBA) Program and provide row crop farmers with one-time payments of up to $155,000.
To receive the aid, farmers will have to verify their 2025 acreage reporting by Dec. 19, 2025, with their local Farm Service Agency office if they have not done so already for the year. USDA is expected to publicize commodity-specific payment rates by the end of the year and release payments by Feb. 28, 2026.
The $1 billion remaining in the aid package will be allocated to support specialty crops as defined by USDA but commonly includes fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops, including floriculture. Specific details of these payments remain under consideration. Livestock is not included in the aid package.
Funding for the aid will be drawn from the Commodity Credit Corporation (CCC) fund, which has historically acted as a financing institution for USDA price and income support initiatives. U.S. Congress recently authorized approximately $13 billion to replenish the CCC fund.
The release of details follows months of calls for the Trump Administration to deliver aid to farmers impacted by market disruptions caused by the administration's imposition of tariffs on virtually all imports, which prompted retaliatory tariffs by some trading partners, including China, a major market for U.S. agricultural exports. In addition to reduced export market opportunities, U.S. farmers have had to contend with increased input costs, from fertilizer to equipment, as well as a constrained labor market.
Additional Assistance
The announced aid package is not the first aid farmers have received in the second Trump Administration. Since the beginning of the year, farmers have received more than $30 billion in ad hoc assistance. The Emergency Commodity Assistance Program has provided the bulk of the assistance, with over $9.3 billion distributed to row crop farmers for economic difficulties experienced in 2024. The Supplemental Disaster Relief Program has sent nearly $6 billion to farmers to assist in recovery efforts related to severe weather events in 2023 and 2024. Marketing Assistance for Specialty Crops has provided $1.8 billion to specialty crop producers for losses caused by rising input costs and other market disruptions. The Trump Administration has distributed another $2.5 billion in the form of block grants to cover losses from 2023 and 2024 that are not covered by other USDA programs.
The aid package announced this week is similar to initiatives the first Trump Administration undertook to address tariff-related challenges faced by farmers. In 2018, President Donald Trump created the Market Facilitation Program (MFP) to provide $12 billion in direct payments to farmers hurt by trade disputes between the U.S. and China, with farmers eligible for up to $125,000 per crop. In 2019, the Trump Administration authorized another $16 billion for farmers through the MFP, with farmers eligible for an increased payment of up to $250,000 per crop. In 2020, the Trump Administration created the Coronavirus Food Assistance Program to provide $16 billion in direct support to farmers who experienced a financial loss due to the pandemic.
Conclusion
USDA's aid package delivers some relief for farmers after months of financial instability and uncertainty. Though the aid package's commodity-specific payment rates are not yet public, qualifying farmers can expect some relief before major agriculture provisions of the One Big Beautiful Bill Act go into effect in 2026, including a 10 percent to 21 percent increase in commodity reference prices for major row crops.
Holland & Knight attorneys and professionals maintain regular contact with key USDA officials and are monitoring USDA initiatives to help ensure agriculture clients are aware and can take advantage of funding opportunities. If you have questions, please contact one of the authors or another member of Holland & Knight's Agriculture & Food Policy Team.
The authors would like to thank Holland & Knight Intern Max Porter for his contributions to this alert.
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