A $12 billion aid plan from President Donald Trump could benefit the farming sector, but also comes with a callout over prices that could put Deere & Company (NYSE:DE) and peers under the president’s careful watch.

Deere & Company Called Out

Trump announced details of the $12 billion farm aid on Monday during a Cabinet meeting. The aid aims to support farmers who have faced higher costs this year, which could be due to trade wars and tariffs.

The president said farming equipment companies will be able to "take off a lot of the environmental restrictions" currently placed on machinery, items that Trump and others said have made farming costs higher.

While this could be good news for Deere & Company, the president also sent a warning about prices for the farming equipment manufacturers.

"We're gonna say, ‘you're gonna reduce the prices.' They're gonna have to reduce their prices. Because farming equipment has ...