Trump Bails Out Farmers Harmed by Trade War

• The U.S. Department of Agriculture (USDA) announced yesterday that initial payouts under its emergency plan meant to help farmers affected by the current trade war will total about $4.7 billion.
• The USDA also said it plans to purchase up to $1.2 billion in certain “commodities unfairly targeted by unjustified retaliation.”
• A third part of the aid will consist of up to $200 million in spending to help develop foreign markets for agricultural products.

Why it matters

Nearly $20 billion in U.S. agricultural exports went to China last year, with the more than $12 billion coming from soybeans.

The USDA’s aid package, which President Donald Trump directed the USDA to design, amounts to half of its estimate of trade impacts.

Some farm groups welcomed the aid while renewing calls for trade restoration. “Our family farmers and ranchers need strong markets and long-term certainty,” said the National Farmers Union.

Tariffs on exports to China, Canada, Mexico, and the European Union are “more than many farmers can bear,” said the American Farm Bureau Federation:

“The real solution to this trade war is to take a tough stance at the negotiating table and quickly find a resolution with our trading partners.”

Others have noted that the aid package will do little to help the most vulnerable farmers, because it’s being distributed through flawed agricultural subsidy programs that favor wealthy people, non-farmers, celebrities, and even dead people. The Environmental Working Group commented:

“Under [yesterday’s] proposal, thousands of city slickers will receive payments.”

Other farm groups have launched a campaign aimed at showcasing how Trump’s tariffs are causing pain among U.S. farmers and manufacturers.

What do you think?

Do you support the aid package to farmers? Why or why not? Hit Take Action to tell your reps what you think, then share your thoughts below.

—Sara E. Murphy

(Photo Credit: iStock.com / fotokostic)