The move would come despite warnings from various GOP lawmakers and business executives who have maintained that such stiff tariffs would damage the US economy and lead to intense political backlash.
That proposal doesn't yet have enough GOP support to pass the Senate, and it appears Trump's bailouts to farm country are meant to tamp down GOP criticism of Trump's trade policies.
At the Jiahao Flag Co Ltd in Anhui province, women operate sewing machines to hem the edges of "Trump 2020" flags the size of beach towels, while others fold and bundle them for delivery.
The plan for providing price supports, which don't need congressional approval, was rolled just two days before Trump is set to travel to Iowa, the top USA soybean-producing state. (See Agriculture Secretary Sonny Perdue sporting one here.) The message is a calculated one as the White House seeks to ease farmers' concerns that a U.S. trade war will hit them hard. Many farmers are accepting that message.
Thirty-nine Republicans and 49 Democrats backed a non-binding resolution earlier this month calling for Congress to have a role when the president imposes trade barriers in the name of national security. Trump also has been under pressure from farm state lawmakers to back away from imposing tariffs.
President Donald Trump is calling China "vicious" on trade and says it is targeting USA farmers specifically because "they know I love & respect" them. The funds will go toward programs to assist farmers for losses associated with the tit-for-tat tariffs. Debt-to-income ratios for farmers are at a 34-year high.
"The president promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong", Perdue said.
The actions "are a firm statement that other nations can not bully our agricultural producers to force the United States to cave in", Perdue said.
"We have never compensated farmers directly on such a large scale for retaliatory tariffs", Irwin said.
"Declaring a trade war on the world, instead of the truly bad actors, leaves a lot of collateral damage", Mr Durbin added.
Governor Kim Reynolds echoed Naig, saying in a statement: "The $12 billion in farm aid announced today will provide a short-term fix, but it's not a long-term solution".
"It's a Band-Aid on a broken leg", said Michael Petefish, a 33-year-old Trump supporter and fifth generation soybean farmer in southern Minnesota. The president, ahead of trade talks with European Union representatives, argued that the levies would force other countries to come to the table.
"This is becoming more and more like a Soviet-type of economy here", Johnson reportedly said, with "commissars" providing benefits.
Kevin Cramer, a US representative trying to unseat Democrat Senator Heidi Heitkamp in North Dakota, praised the move.
The money comes after farmers, especially soybean growers, have felt the brunt of retaliatory tariffs placed on agriculture by China and other nations that the Trump administration has penalized with tariffs on imports. In 2017, Chinese imports to the USA totaled around $5.05 billion. The plan aims to provide temporary relief to farmers who have faced retaliation from USA trade partners during Trump's escalating trade dispute with China.
"Taxpayers are going to be asked to initial checks to farmers in lieu of having a trade policy that actually opens and expands more markets".
Republican Senator Mike Rounds of South Dakota said on Wednesday that farmers in his state have lost millions of dollars in orders.
The CCC allows the sale of agriculture commodities to other government agencies and foreign governments and the donation of food to domestic and foreign relief agencies.