There's a sense of relief among leaders across the country in the agriculture industry after President Donald Trump's administration set aside some $12 billion in aid for farmers nationwide. That relief is also coming with concern that the issues that brought about the aid are not being fixed, however.
"It's good to see it finally rolled out," said Minnesota State Ag Commissioner Thom Petersen. "We've been talking about it for quite some time and I don't know that it solves some of our longer term programs. But what it does is it gives a lifeline to some of those farmers who are really gonna need it, especially as they go into the next planting year."
The aid comes after President Trump raised tariffs on China, and farmers struggled to sell their crops while getting hit by rising costs. Soybean farmers were particularly hard hit, with a significant portion of producers in Minnesota and the U.S. selling their soybeans to China.
Petersen points out that $11 billion of that sum is for corn, soybeans and wheat, which are Minnesota's biggest crops. The rest is for specialty crops, such as fruits and vegetables.
He unveiled the plan Monday afternoon at a White House roundtable with Agriculture Secretary Brooke Rollins, lawmakers from farm states, and farmers who thanked him for the help.
“With this bridge payment, we’ll be able to farm another year,” Iowa farmer Cordt Holub told Trump during the event.
Minnesota senior U.S. Senator Amy Klobuchar (D) says the bailout of the nation's farmers is needed, but adds that it's not a long-term fix. In a statement, Klobuchar said farmers want "trade and not aid."
"The old saying is we want to get our money from the marketplace, not the mailbox," says Commissioner Petersen. "Farmers worked hard to produce awesome crops every year. They did that this year, you know, and then kind of get caught in the middle."
Farmers are expected to start receiving payments in February, no higher than $155,000.
"Farmers end up kind of being pawns in some of this and you know, whatever we can do to return some stability to our markets would be helpful," Petersen adds. "But today, we'll welcome the news because it is needed. We know the mediation notices for farmers are 234 times what they were last year. We know bankruptcies are up."
The president of the Minnesota Farmers Union also is saying the money is welcome, but Gary Wertish told Vineeta Sawkar on the WCCO Morning News that the funds won't make a dent in many farmers' finances.
"I wouldn't even call it a band-aid," he said on Tuesday. "So, you know, it's very frustrating. The farmers, we spent a lot of our own money building up these markets. And now, through his, through his love of tariffs, this has been destroyed. And we have to rebuild."
Wertish says the Trump tariffs have hit farmers from all sides, driving input costs higher while crop prices are declining. Mr. Trump did say when announcing the bailout that he "loves America's farmers." Wertish also say the money set aside is not enough to help farmers who are struggling.
"And now he's saying he's gonna give us $12 billion, you know, as he's claiming that he really loves our farmers. Well, if you love our farmers, you wouldn't have this type of a policy," Wertish adds. "We'd work at our trading partners and have a good trading relationship."
Wertish questioned if it was fair to the taxpayer that federal dollars are being funneled out in bailouts. He also says farmers would rather make their money selling their crops instead of getting a government check in the mail.
Rollins put the immediate value of the program at $11 billion — money that the White House said will offer one-time payments to row-crop farmers. Another $1 billion will be put aside for specialty crops as the administration works to better understand the circumstances for those farmers, Rollins said.
“We looked at how they were hurt, to what extent they were hurt,” Trump said, explaining how the administration came up with the size of the package. Trump said the money for the program will come from tariff revenue.
Farmers have backed Trump politically, but his aggressive trade policies and frequently changing tariff rates have come under increasing scrutiny because of the impact on the agricultural sector and because of broader consumer worries.
The aid is the administration’s latest effort to defend Trump’s economic stewardship and answer voter angst about rising costs. Trump has been dismissive of the affordability issue at times, but on Tuesday, he is set to travel to Pennsylvania to talk about how his administration is trying to address a concern that is important for voters.
The Associated Press contributed to this story.