As lawmakers return from the Thanksgiving break for the final weeks of the year, the Trump administration and Congress face a crowded agenda of unresolved agricultural issues, including biofuel policies and financial relief for farmers impacted by tariffs.
Agriculture Secretary Brooke Rollins has indicated that a new support package for producers is imminent, with an announcement possible this week. According to Deputy Agriculture Secretary Stephen Vaden, the payment plan will consider recent shifts in commodity markets. The push for assistance comes as a recent analysis from the American Farm Bureau Federation warns that five of seven major crops are projected to experience larger average losses this year due to rising input costs and export uncertainty.
However, some critics are urging the administration to ensure any new aid program is more efficient. A coalition of non-profit organizations, including the R Street Institute and Taxpayers for Common Sense, wrote to USDA officials last week advocating for strict payment limits and oversight. The groups cited a 2022 Government Accountability Office review of the 2018-2019 Market Facilitation Program, which found that $800 million was distributed to ineligible recipients or in incorrect amounts. “USDA should take prudent measures to direct aid to where it is needed most and avoid unnecessary spending or waste,” the letter stated.
Beyond agriculture, one of the most pressing issues for the returning Congress is the looming expiration of expanded premium subsidies for Affordable Care Act insurance policies. Senate Democrats have been promised a vote on extending the subsidies this month. On CNN’s “State of the Union,” Sen. Amy Klobuchar, D-Minn., suggested that Republicans could face political backlash if they block an extension. The White House has reportedly considered a two-year extension, and President Trump told reporters last week that some form of extension may be necessary, though it remains unclear if he can secure sufficient support from congressional Republicans.
China Soybean Purchases Lag Behind Target
Concerns are growing over China’s agricultural purchases. With only a month remaining before its deadline, Beijing is significantly behind on its commitment to buy 12 million tons of U.S. soybeans and could still be as much as 10 million tons short, according to USDA sales data.
President Trump acknowledged the slow pace, telling reporters he raised the issue in a phone call with Chinese President Xi Jinping. “I asked him – ‘I’d like you to buy a little faster. I’d like you to buy more,’” Trump said, adding that Xi had “more or less agreed to do that.” Following the call, Reuters reported that Chinese buyers placed new orders for 10 U.S. cargoes valued at approximately $300 million.
However, Agriculture Secretary Rollins emphasized the need for a long-term strategy to diversify U.S. agricultural exports. “When our farmers in America are so reliant on one purchaser, that is not healthy for anyone,” Rollins told Fox Business, adding that new trade deals will open markets for U.S. soybeans in other countries.
Stakeholders Weigh In on North American Trade Pact
This week, the Office of the U.S. Trade Representative will hold a three-day listening session on the U.S.-Mexico-Canada Agreement (USMCA) as part of a review process scheduled for next year. The trade pact includes a provision for the three countries to review the deal after six years and decide whether to extend, reform, or terminate it after 2036.
A recent public comment period generated over 1,500 submissions, including input from more than 100 agricultural groups and over 90 individual farmers and ranchers. While the agreement has broad support in the agriculture sector, many respondents offered recommendations for improvement.
A key legal question remains unresolved: whether any significant updates to the agreement would require congressional approval. Ryan Majerus, a trade lawyer and former Commerce Department official, suggested the administration may want to consult with Congress to avoid potential conflicts. However, Mayur Patel, former chief international trade counsel for the Senate Finance Committee, noted that the legal necessity depends on the scale of the changes. “This is a bit of a debate between the executive branch and Congress about where the line is drawn,” Patel said.
