WASHINGTON, Oct 6 (Reuters) - The Trump administration is expected to announce a plan as soon as Tuesday to bail out U.S. farmers stung by trade disputes and big harvests, with the initial outlay potentially totaling up to $15 billion, according to sources familiar with the matter.
The plan, however, could be difficult to roll out as an ongoing government shutdown prevents the kind of Congressional action needed to approve such a large payout, and existing government reserves fall short, the sources said.
Farmers generally support President Donald Trump but have pressed his administration for trade deals as China continues to spurn U.S. soybean purchases amid tit-for-tat tariffs, and a record corn harvest threatens to sink farmer profits.
Republican lawmakers have warned farmers face "financial calamity" if they do not receive aid by the end of the year. Treasury Secretary Scott Bessent said last week, opens new tab that the White House would announce aid for farmers on Tuesday.
Three sources told Reuters they expected the administration to announce the package this week.
One of those sources said the bailout would total somewhere between $10 billion and $15 billion, and would be a necessary bridge to get farmers through the harvest months and could be followed by additional aid.
The funds would go to soybean farmers affected by the China trade spat, as well as other types of commodity farmers, though the exact details were not yet determined, that source said.
A U.S. Department of Agriculture spokesperson said farmers are benefiting from lower taxes, trade deals and updates to farm programs included in Trump's July tax-cut and spending bill.
"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," the spokesperson said.
National Economic Council Director Kevin Hassett on Monday said the White House had held several meetings on farmer aid in the past two weeks.
"We're taking big measures and those big measures are going to be public really, really soon," he said on CNBC.
