Hoeven: Trump has money to provide trade aid

The Trump administration has money to provide $13 billion in aid to farmers who have been hurt by the loss of sales to China, Senate Agriculture Appropriations Subcommittee Chairman John Hoeven, R-N.D., told The Hagstrom Report in a telephone interview this afternoon.

Although there have been reports that the Commodity Credit Corporation, USDA’s line of credit at the Treasury, is down to $4 billion, Hoeven said the administration can make $13 billion available to aid the farmers, but the timing of that aid is up to the Trump administration.

Agri-Pulse reported earlier today that the White House Office of Management and Budget had greenlit a transfer of $13 billion from the CCC to the office of Agriculture Secretary Brooke Rollins on September 28. Hoeven did not explain exactly how the Trump administration had authority to undertake the movement of that money but said it involved the fact that one fiscal year came to an end on September 30, another is starting and that the CCC will be replenished in the new fiscal year. Under current law, USDA can spend $30 billion from the CCC in a fiscal year, but with Congress not passing a continuing resolution or a fiscal year 2026 Agriculture appropriations bill, that replenishment does not appear to have taken place.

“They can use the $13 billion,” Hoeven said, adding that he had worked with the Office of Management and Budget to make sure the money is available.Hoeven said he does not want to get ahead of the Trump administration on making an announcement but that the reason for making an announcement at this time is to send a message to the Chinese that they “can’t retaliate” against the Trump administration by making life difficult for American farmers. He noted that Trump and Chinese President Xi Jinping are expected to meet in person at the Asia-Pacific Economic Cooperation summit in South Korea at the end of October.Hoeven said repeatedly that trade aid is only one step in helping farmers deal with their financial situation until the enhanced Agriculture Risk Coverage and Price Loss Coverage programs go into effect in the fall of 2026.What farmers need, Hoeven said several times, is “a bridge” until the enhanced programs in the One Big Beautiful Bill Act go into effect. While the impact of lost soybean sales to China has become well known, they are not the only farmers who need help, Hoeven said.Corn farmers, whose prices are low because the crop is so big, would be helped if Congress passes a bill to legalize sales of E15 gasoline year round nationwide, he said. Hoeven also said he is working on legislation to provide more aid through Section 32, a 1935 law that allows the use of a certain amount of tariff income to be used to aid farmers. He also noted that the Wildfires and Hurricanes Indemnity Program (WHIP) and the Emergency Relief Program (ERP) can be used to aid farmers.Specialty crop growers, who include fruit, vegetable, tree nut and landscape plant growers, said Monday they also need help. Fruit and vegetable growers have benefited in particular from Section 32 over the years.

There has been speculation today that Trump will make an announcement about trade aid, but no official action has been announced.

Treasury Secretary Scott Bessent said last week that the Trump administration would make an announcement today about aid to farmers who have lost sales to China.

“I’m going to do some farm stuff this week,” Trump said at the White House on Monday, according to The New York Times.Alec Varsamis, a spokesman for Rollins, told The Hagstrom Report in an email today: “President Trump has made it clear he will not leave farmers behind, so USDA will continue to assess the farm economy and explore the need for further assistance. However, there is nothing new to share at this time.”