The United States Government is evaluating a new aid package between US$10,000 and US$14,000 million for the agricultural sector, hit by the tariffs, rising costs, labor shortages and falling prices of raw materials. According to sources cited by CNN, the White House is seeking to finalize details with the Departments of Agriculture and the Treasury, amid growing political pressure on President Donald Trump to contain the unrest in the countryside, one of his main electoral strongholds, which was also affected last week. due to the zero withholdings applied by Argentina.
The agricultural production expenses in the United States they will reach US$467.4 billion in 2025an increase of u$s12 billion compared to the previous year, according to the Department of Agriculture (USDA). At the same time, the agricultural bankruptcies They rose in the first half of the year to their highest level since 2021.
“The agricultural economy faces an important challenge at this time,” acknowledged the Secretary of Agriculture, Brooke Rollins. “Not only soybean producers, but also corn, wheat, sorghum and cotton.”
Two ways to rescue
Two main options are being considered in the White House:
Both mechanisms could be combined, depending on the immediate availability of resources. “The final figure will depend on how much farmers need and the tariff revenue they are bringing in,” an administration official explained.
Trump, who often attributes a key role to farmers in his 2024 election victory, has insisted on protecting the sector, which he considers part of the national security:
“We need to produce our own food. We cannot depend on imports from other countries,” said a presidential advisor.
The soy crisis and the Argentine impact
The soythe main agricultural export of the US (more than US$24 billion in 2024), has become the epicenter of the crisis. In 2024, China bought half of US productionbut trade has plummeted since May, after the imposition of a 20% tariff from Beijing in retaliation for Trump’s policies.
The blow was double: while the US lost its main market, China redoubled its purchases from South Americaespecially to Argentina and Brazil.
In recent weeks, the US Treasury announced a $20 billion financial lifeline for him Central Bank of the Argentine Republicintended to reinforce dollar reserves. This measure allowed Buenos Aires temporarily eliminate withholdings on grain exportswhich made Argentine soybeans cheaper and accelerated their sale to China.
According to Reuters, Beijing acquired at least 10 shipments of Argentine soybeans after the announcement, while Brazil and China signed a pact to deepen your agricultural trade alliance.
Political pressure and urgency
With the harvest underway, American producers warn that “time is running out”. “We need an agreement with China, and we need it soon,” he claimed. Caleb Raglandpresident of the American Soybean Association.
Trump, for his part, blamed Beijing for the soybean crisis and promised that the issue will be “at the center” of his next meeting with the Chinese president. Xi Jinpingscheduled for next month in South Korea.
Secretary Rollins, one of the president’s closest officials, is leading the efforts to finalize the aid package. In a recent message to the Secretary of the Treasury, Scott Bessentwhich was leaked to the press, expressed his “urgent concern” about the deterioration of the sector.
“The ability to use tariff revenue to compensate farmers is a very elegant solution,” Rollins said. “That is what the president wants us to analyze now
Source: Ambito
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