The government shutdown is hitting communities nationwide, including farmers who were expecting federal relief to offset economic losses. Straight Arrow News reported last week that billions in aid had been earmarked for farmers affected by tariffs, but new reports say the payments have been delayed.
In fact, payments and loan services to farmers have already been suspended under the shutdown, halting crucial financial support during planting and harvest cycles.
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Farmers waiting for relief
Politico reported that four sources close to the Trump administration said $12 billion to $13 billion had been set aside for the bailouts. But it is now unclear how much will reach the farming industry or when the relief will arrive, as USDA appointees remain sidelined due to the shutdown.
Under law, when appropriations lapse, USDA must suspend many operations, and only a limited number of programs can continue under its “lapse funding plan.” That means new payments, disaster assistance processing, research, technical aid, trade negotiations and most regulatory and survey work are paused.
Meanwhile, essential services remain active, such as food safety inspections, emergency disease control, conservation work and import/export grading, so long as funds or legal authority allow. According to the plan, about 42,000 USDA employees will be furloughed, significantly curtailing many services. The uncertainty adds to confusion about how quickly federal relief can reach farmers.
Because of the Antideficiency Act, the USDA can’t legally commit to new payments until appropriations are resumed, meaning even approved aid cannot be disbursed.
The bailout money was expected to come from tariff revenue, the USDA’s Commodity Credit Corporation fund or another federal financing method, according to Politico.
The current situation echoes what farmers faced during the 2018–19 government shutdown, when USDA suspended loan processing, halted data reports and delayed trade-aid payments for weeks. That shutdown left many growers in limbo at the height of the planting season. In the months that followed, Washington rolled out roughly $23 billion in trade assistance to offset tariff losses.
Soybean farmers struggling
Treasury Secretary Scott Bessent told CNBC that substantial support for farmers was on the way this week, saying, “They’ve had President Trump’s back, and we’ve got their back.”
Farmers continue to face mounting pressure from falling exports, especially soybeans. China, once the top buyer of U.S. soybeans, has reduced its purchases amid trade tensions, redirecting demand to Argentina after the country lowered its export taxes.
The USDA estimates that U.S. farmers will plant roughly 80 million acres of soybeans in 2025, producing about 4.3 billion bushels, many of which could sit in storage or sell at lower prices if demand does not rebound.
President Trump has said soybeans will be a key focus in upcoming talks with Chinese President Xi Jinping, pledging on Truth Social earlier this month that he will “never let our farmers down.”
Farmers reaching out for help
Beyond immediate relief, industry groups are also making their concerns heard directly to the administration. On Oct. 6, a coalition of more than 200 U.S. agriculture organizations sent a letter to Trump praising recent farm legislation but warning that many growers would not see key benefits until 2026.
The letter stressed that farmers are struggling under low crop prices and rising costs. USDA figures show production expenses per farm are up nearly 40% since 2020. It also noted a sharp rise in Chapter 12 bankruptcy filings, which increased by 56% in the 12 months ending June 2025 compared to the previous year.
The groups urged the administration to continue using international and domestic market leverage to help farmers navigate these pressures, describing it as a “bridge” until market conditions improve.
