By Faith Parum
Key Takeaways
- Low commodity prices, elevated input costs and ongoing market uncertainty have many farmers facing another year of negative or near-break-even returns.
- The Trump administration’s $12 billion in economic assistance for farmers provides timely relief as farmers prepare for the 2026 planting season but does not fully cover farmers’ losses over the last few years. Of the $12 billion, $11 billion is allocated for the Farmer Bridge Assistance (FBA) Program, which will deliver support to row crop farmers, helping to offset a portion of projected 2025 losses and provide cash-flow assistance.
- The remaining $1 billion has been set aside for specialty crops and sugar growers, but additional information on a timeline, eligibility and how payments will be calculated has not been released.
USDA has announced $12 billion to provide one-time economic aid to farmers facing financial losses during the 2025 crop year. Of that total, $11 billion is directed to row crop producers in the Farmer Bridge Assistance (FBA) Program. The remaining $1 billion is reserved for specialty crops and sugar assistance, though USDA has indicated that additional data collection and analysis are needed to determine how these payments will be structured and distributed.
Even after accounting for crop insurance indemnities and prior ad hoc assistance, the agriculture sector continues to experience multi-billion-dollar losses each year. The FBA program is a needed step toward easing financial strain in the farm economy, but it is not expected to cover the full extent of row crop losses during this prolonged period of elevated costs, low crop prices and weak margins. Additionally, the $1 billion allocated for specialty crops falls short of addressing the total losses that specialty crop producers are facing.
Importantly, the FBA program is designed to serve as an economic bridge until the One Big Beautiful Bill Act (OBBBA) enhancements take effect beginning in fiscal year 2026.
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