By Scout Nelson
Farm communities continue to feel pressure from ongoing tariffs, making the topic one of the most important issues of the year. A new $12 billion federal aid package is now taking shape to help farmers manage short-term challenges. However, economists say the support does not solve deeper problems linked to disrupted trade.
The package includes $11 billion in one-time payments for crop growers through the Farmer Bridge Assistance program. Another $1 billion will support farmers whose crops do not qualify under that program. The goal is to help producers who face falling prices, lost export markets, and financial strain.
Economist Ernie Goss from Creighton University says the aid shows how complicated the situation has become. He explains that while the package helps farmers manage losses today, true recovery depends on restoring trade and rebuilding export markets. Goss says farmers need strong demand from international buyers to remain profitable.
He also notes that the impact of tariffs goes far beyond farm fields. Farm equipment companies, such as those that produce tractors and machinery, are hurt when farmers stop buying equipment. Retail stores that sell supplies also experience fewer sales. According to Goss, this shows how one policy decision can affect many parts of the economy.
Goss warns that the long trade conflict is creating uncertainty for 2026. He says business leaders may view trade as a competition, but economists see it as beneficial for both sides. He explains that no country can grow every product it needs and that trading crops like soybeans, corn, wheat, and beef helps everyone.
Along with farm challenges, the housing market also remains an important factor to watch. Goss believes that changes in housing costs will play a major role in shaping the overall economy next year.
Overall, the aid package offers short-term relief, but experts believe that long-term recovery depends on improved trade relationships, renewed exports, and stronger economic conditions across rural areas.
Photo Credit: gettyimages-sizsus
Categories: South Dakota, Government & Policy