LUBBOCK, Texas (RFD NEWS) — Questions are growing about how tariff revenue is used and whether farmers benefit, as trade policy again reshapes agricultural markets and federal spending priorities.
Dr. Bart Fischer of the Agricultural and Food Policy Center at Texas A&M University notes tariff revenue flows through longstanding statutory channels rooted in the Agricultural Adjustment Act of 1935. Section 32 requires 30 percent of customs duties to be directed toward agricultural priorities, including export promotion, domestic consumption support, and the restoration of farmers’ purchasing power.
Tariff collections have climbed sharply. Customs duties rose from $34.6 billion in 2017 to $70.8 billion in 2019, and the Congressional Budget Office projects duties could jump from $77 billion in 2024 to about $418 billion by 2026 under expanded tariff use.
In practice, most Section 32 funds support nutrition programs rather than direct farm payments. USDA retains limited authority for commodity purchases and assistance, while appropriations rules cap farmer-directed support at roughly $350 million in carryover funds annually — a small share if 2026 projections hold.
The structure leaves policymakers relying on tools like Commodity Credit Corporation programs for farm relief despite rising tariff revenues.
Farm-Level Takeaway: Tariff revenues rarely flow directly back to farmers.
Tony St. James, RFD NEWS Markets Specialist
Pressure to lower gas prices across the Golden State could be the saving grace of this year’s corn harvest. California may soon be the final U.S. state to approve E-15 sales.
September 09, 2025 11:12 AM
·
Both Congressional Ag Committees took up the bill over the summer, but there’s no word on when the Senate could move forward; it does expire on September 30.
September 09, 2025 10:37 AM
·
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report with his insights on the incident and a deeper dive into the issues at hand.
September 08, 2025 12:00 PM
·
As the Trump Administration seeks out new global trade partnerships, Congress is considering more support for farmers, which comes as the Federal Reserve warns that farmers need a safety net.
September 08, 2025 11:47 AM
·
Ag Secretary Brooke Rollins will travel to Europe and Asia to seek new trade partnerships for U.S. crops after China reduced imports due to tariffs.
September 08, 2025 11:45 AM
·
The $221 million will help farmers and ranchers cover losses from Hurricane Helene that USDA programs didn’t cover. They’ll focus on infrastructure, markets, timber, and future economic losses.
September 05, 2025 05:09 PM
·
