Tariff relief for farmers

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NICK EICHER, HOST: Coming up next on The World and Everything in It: financial assistance for farmers.

President Trump announced a $12 billion aid package last week that will give farmers emergency grants to counter rising production costs and market instability.

The bulk of the assistance will go to farmers who grow row crops–like corn, wheat, and barley. Many have been hit twice by the ongoing tariff wars. Their input costs are higher, yet the price they’re able to get for their products has gone lower.

MARY REICHARD, HOST: WORLD’s Todd Vician spoke with farmers who are thankful for the aid package, but remain frustrated.

AARON LEHMAN: We appreciate the help, because farmers have had a tremendous amount of damage due to chaotic trade policies.

TODD VICIAN: Aaron Lehman farms 500 acres in the heart of Iowa. He’s also president of the state’s farmers union. He says farmers are caught in the middle of global trade policy and should be compensated.

AARON LEHMAN:
But the damage is very, very deep, and it's both short term and long term.

American agriculture exports were already dropping before Trump’s new tariffs this year. The $175 billion of agricultural products exported last year was 10% less than in 2022. But export quantities are only one part of the equation.

PAUL KANNING: On the supply-demand curve, the U.S. supply is higher of ag goods, which then drives the prices down.

Paul Kanning is a fifth-generation farmer growing wheat, lentil, canola, and other crops on 2,800 acres in northeastern Montana.

KANNING: So like, for example, lentils … they're worth half of what they were back in January.

The last couple of years have gotten worse financially. He says many of his neighbors are close to a breaking point. The nearby university extension office agrees.

KANNING: Right now now they're, they're forecasting for 2026, a loss on every crop. You're going to lose money for every acre you put those in, unless something big changes.

The Farmer Bridge Act will provide grants of up to $155,000 to farmers who planted certain row or specialty crops this year. It’s the third time the Trump administration has provided emergency payments to compensate for tariff related farm losses.

The Ag Department's Robert Fordyce tried to reassure farmers that even the smallest farms will benefit from this go-around.

ROBERT FORDYCE: If you plan an eligible prop and you've taken a hit, you'll receive support.”

Iowa farmer Aaron Lehman is taking a wait and see attitude.

LEHMAN: During previous bailouts in Iowa, unfortunately, some did not get to the right folks. Some farmers didn't receive anything. In some cases, the payments were too concentrated to the largest operators.

Farming is a tightly regulated industry with high expenses and low profit margins. Marketplace consolidation means farmers have fewer choices when purchasing seed, fertilizer, and livestock. Plus a shrinking number of choices when it comes time to sell what they grow.

And even as food costs increase for the American consumer, those higher prices at the grocery store don’t find their way to the farmers’ wallets.

LEHMAN: USDA keeps track of what is the farmer's share of the U.S. dollar. And we're in an all time low, less than 15 cents of every food dollar actually comes back to the farmer.

Last week’s announcement has been described by some as a bridge to next year’s planting season…and potentially higher prices for farmers. Lehman hopes to someday hand his operation to his son—who will be the sixth generation to farm their Iowa land. So he’s grateful for the government assistance but not sure it provides the necessary long-term solutions to make his son’s prospects very bright.

LEHMAN: We know that this aid package won’t make farmers whole. We need to reform our trade approach so that farmers can reasonably sell what they grow into the marketplace fairly both domestically and foreign.

Montana farmer Paul Kanning agrees. Something has to change, and another temporary measure won’t be enough.

KANNING: If something doesn't change, does that mean, the federal government's going to do this again next year, when, when we're upside down on it? We just want free and fair markets. That's all we want.

Reporting for WORLD, I’m Todd Vician.

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