At a Glance
- USDA announces $12B aid per acre for row crops
- Soybeans $30.88, corn $44.36, sorghum $48.11 per acre
- China aims to purchase 12M MT of U.S. soybeans by year-end
- Why it matters: Farmers get short-term relief while China’s demand stabilizes
Farmers across the U.S. are learning how much help the new $12 billion USDA package will bring. The department released per-acre payouts for row crops, while Washington signals China’s return to buying U.S. soybeans.
Row Crop Aid Details
The USDA disclosed payouts that farmers can plan for each acre: soybeans $30.88, corn $44.36, sorghum $48.11. Payments are capped at $155,000 per farmer or entity and only farms with adjusted gross income below $900,000 qualify. The aid totals $11 billion for row crops and an additional $1 billion for specialty crops and sugar, though details are still pending.
| Crop | Aid per Acre |
|---|---|
| Soybeans | $30.88 |
| Corn | $44.36 |
| Sorghum | $48.11 |
Caleb Ragland stated:
> “Band-Aid on a deep wound. We need competition and opportunities.”
Jed Bower said:
> “Corn growers have been sounding the alarm about the fact that farmers have been faced with multiple consecutive years of low corn prices and high input costs. While this financial assistance is helpful and welcomed, we urgently need the administration and Congress to develop markets in the United States and abroad that will provide growers with more long-term economic certainty.”
Brooke Rollins said:
> “That is the goal and promised to continue working to open new markets while strengthening the safety net for farmers.”
Darin Johnson noted:
> “Aid number for soybeans fell short of what farmers had been hoping for, so more help could be needed, though this package will help.”
China Trade Outlook
After a meeting with Chinese leader Xi Jinping in South Korea in October, the White House said Beijing pledged to buy at least 12 million metric tons of U.S. soybeans by the end of the calendar year, plus 25 million metric tons a year for the next three years. Officials say China is on track to meet the 12 million-ton goal by February. As of December 18, China had purchased about 6 million metric tons, with an additional 600,000 metric tons in three more batches since then.
| Metric | Commitment | Current (Dec. 18) |
|---|---|---|
| Soybeans | 12 M MT by year-end | 6 M MT |
| Soybeans | 25 M MT per year next 3 years | – |
Tim Lust said:
> “The recent increase in international purchases is encouraging to farmers, and we have seen more than 1 million metric tons of sorghum purchased in just the past few weeks.”
Key Takeaways
- The aid package offers temporary relief for row crop farmers.
- Payments are capped at $155,000 and only farms under $900,000 adjusted gross income qualify.
- China’s commitment to buy 12 million MT of soybeans could stabilize U.S. market demand.
The aid package offers temporary relief, but farmers still face high input costs and limited market access. Whether the new funding and China’s buying will sustain long-term profitability remains to be seen.
