Farmers grateful for help through economic storm

President Donald Trump announced a $12 billion farm aid package — a boost to farmers who have struggled to sell their crops while getting hit by rising costs after the president raised tariffs on China as part of a broader trade war.

The Farmer Bridge Assistance Program will send economic help to farmers by the end of February.

Corn growers are expected to receive the largest share of payments at more than $4.5 billion as University of Illinois farmdoc estimates bridge payments for corn at $46 an acre.

Soybean growers will receive over $2 billion of the $11 billion allocated to row crop farmers in the program with an estimated bridge payment of $25 per acre, according to farmdoc.

Payments will be capped at $155,000 per farm or person, and only entities that make less than $900,000 a year will be eligible for aid.

Farmers say they are grateful to President Trump and Agriculture Secretary Brooke Rollins for providing resources that, for many, could make the difference between staying in business to plant another crop, or shuttering a family farm.

Most farmers don’t want a handout. They don’t want a bailout. They just want to be able to grow their product and sell it for a strong amount.

But the overall farm economy is in a significant downturn as farmers try to prepare for 2026.

Farmers have been hit from every direction during this economic storm. They face the same high prices as all of America’s families, as more of their income is going to household bills and higher operating costs, including loans, equipment and supplies.

At the same time, farmers are receiving historically low prices for most major crops — they were predicted to lose $34 billion last year alone.

So, the aid package adds a little bit more stability as we move into this new year and new planning season.

Is The Era Of Low-Cost Beef Behind Us?

The U.S. Department of Agriculture’s Cattle on Feed report indicates continued tight feeder cattle supplies.

USDA estimates cattle on feed at 11.7 million head, down 2%, or 260,000 head, from a year ago. Just over 2 million head of cattle were placed into feedlots, down 227,000 head, or 10%, from last year.

Halted imports from Mexico are contributing to the decline. The United States has banned the import of live cattle from Mexico to protect the domestic herd from New World screwworm.

The parasitic fly was eradicated from the United States in 1966, but began re-emerging above the biological barrier in Panama in 2022 and has continued moving north through Central America.

Packing plant closures, among other factors, have led to lower cattle prices and massive market volatility.

Falling cattle prices are coming at a time when cattle farmers are typically making decisions about whether to hold back heifers for breeding or place them on feed.

Retaining heifers for breeding could lead to herd expansion — but with input costs at near-record levels and prices still 25% higher than a year ago, there is a lot of incentive for farmers to market cattle rather than hold them back for breeding.

As a result, cattle supplies are likely to remain tight well into 2026 and delay meaningful expansion in the cattle herd until at least 2028.

James Henry is the executive editor of Illinois AgriNews and Indiana AgriNews.