AILSA CHANG, HOST:
President Trump says that he is sending $12 billion in aid to American farmers who are reeling from global trade disruptions - disruptions like inflation and Trump's tariffs, which are making fertilizer and farm equipment more expensive. Also, the president's trade war with China closed a huge market for American soybean exports. We're going to get the view now from the Midwest, and to do that, we're going to bring in NPR's Kirk Siegler, who's joining us from Mitchell, South Dakota. Hi, Kirk.
KIRK SIEGLER, BYLINE: Hey, Ailsa.
CHANG: Hey. OK, so tell us a little bit about where you are right now and why that's such a good starting point for this whole story.
SIEGLER: Well, I'm in the heart of row crop country. Think of soybeans, think of corn. Of course, I'm looking out the window right now. It's all covered in snow. Bracing for another lot of wind and more blizzard-like conditions possibly tonight. But I'd be remiss if I didn't tell you that Mitchell is home to the world's only corn palace. You could picture - yeah - you could picture, like, a classic Midwest roadside attraction. But I mention this 'cause it's symbolic of how farming literally touches every part of life and the economy here. And right now, I have to tell you the mood continues to be one of anxiety.
CHANG: Yeah, I imagine so. And just yesterday, the White House said that this $12 billion aid package for farmers is supposed to bridge the gap between President Biden's failures - that's how President Trump put it - and his successful policies, Trump's successful policies. So let me ask you, Kirk, is that how farmers are seeing it?
SIEGLER: Well, that depends on who you ask. Conservative groups like the Farm Bureau are calling it an encouraging sign. Farmer unions, even here in red Trump states like South Dakota, say this bailout, as they say, was all preventable if President Trump hadn't started another trade war with China like he did in his first term. You know, this has led to China levying retaliatory tariffs, buying soybeans from Brazil instead. And long-standing export markets have really been closed to American farmers. So this $12 billion deal we're talking about isn't even as big as the 2019 aid package was, but generally, Ailsa, I'd say farmers are relieved to see some money coming finally because, you know, this is when they're trying to get loans for next year, and if you've got a bunch of soybeans just sitting in storage bins, not selling, it's pretty hard to prove to a bank that you're a viable business.
CHANG: Exactly. Well, the Trump administration says it now does have commitments from China to keep buying millions of bushels of American soybeans, right? So are the farmers you're talking to selling their soybeans again?
SIEGLER: Well, I'm hearing their - the exporting is starting to resume but very slowly. You know, as for the trade deals, South Dakota farmers have been telling me they haven't seen anything on paper yet and are just working off promises by the administration. So today, I met Kevin Deinert. We climbed up this narrow, slippery staircase to the top of his four-story-high grain bin. Let's listen now as he opens the hatch here.
KEVIN DEINERT: So I stored everything I could, so it's full. As you can see, a little too full.
SIEGLER: Right, so Deinert told me...
CHANG: Too full.
SIEGLER: Yeah, exactly. Deinert told me he's been storing as many as he can, holding out for better prices in hopes that President Trump will ink better deals, but here we are almost at the end of the year.
CHANG: I mean, how much longer can farmers wait at this point?
SIEGLER: That's a great question. A lot of farmers I've been talking to throughout this year were already right on the margins. You know, they're still recovering from supply chain problems from the pandemic, you mentioned inflation, tariffs on fertilizer from Canada, to name a few things. You know, Deinert is 38. He's a fifth-generation farmer. He doesn't like the idea of another bailout. He told me today he just wants to farm and make a living.
DEINERT: And, you know, as farmers, we want trade, not aid. It's meaningful. I'm not going to say it's not meaningful, but is the quantity going to alleviate all the farmers' concerns? I don't think so.
CHANG: But, Kirk, is this aid package enough to keep farmers on board with President Trump, you think?
SIEGLER: Well, this is a question that everybody's been asking, and I've been wondering for months now, talking to farmers and traveling around the country. Farmers are always reluctant to talk politics, but, you know, next year is the midterms.
CHANG: Yeah.
SIEGLER: I'm talking to you from South Dakota. It's the home state of Senate Majority Leader John Thune. So there's a lot riding on whether these agreements, particularly with China, are going to hold.
CHANG: Right.
SIEGLER: You know, even if they do, farmers say it would really only bring us back to where the export market was a few years ago. And so I think a big question right now is, what was the point of all of this? But if Republicans want to maintain their majority, they're going to have to need farm country to stay on board.
CHANG: That is NPR's Kirk Siegler. Thank you, Kirk.
SIEGLER: You're welcome. Transcript provided by NPR, Copyright NPR.
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