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Home / US / Trump Farm Bailout to Provide $ 6 Billion in the First Discharge

Trump Farm Bailout to Provide $ 6 Billion in the First Discharge



Soybean farmers receive the largest share of nearly $ 4.7 billion in payments under the Market Facilitation Program, which will begin making payments to producers of corn, cotton, dairy, pork, sorghum, and wheat as of September 4. USDA unveiled the trade mitigation package on July 24, but provided few details at the time.

"We always knew that agriculture would be the spearhead if other nations decided to avenge themselves," USDA Secretary Sonny Perdue said in a teleconference with reporters Monday. "We also knew that economic pressure was already there for farmers, even without these unfair trade tariffs."

Soybeans have been hit hard by Chinese tariffs and can receive up to $ 3.6 billion under the market development program. Another $ 290 million goes to pork, about $ 277 million for cotton and $ 1

56 million for sorghum, $ 127 million for dairy, 119 million for wheat and 96 million for corn.

Perdue says farmers' payments will benefit the government As part of the relief plan, "it will be forked so we can monitor and take into account events," as trade breaks such as the US announced on Monday with Mexico. "An announcement of further payments will be made in the coming months, if warranted," he added.

Part of the help from the Trump Plan comes from the authority of the Commodity Credit Corp. the Great Depression. The CCC established Market Facilitation Program will determine the payment rate for farmers of a commodity, taking into account the severity of the disruption and the time of adjustment to new trade patterns, based on the actual production of each producer, "the USDA said. [19659002] Market Aid payments are managed by the USDA's Farm Service Agency and are limited to farmers with an average adjusted gross income of less than $ 900,000 for tax years 2014 through 2016. Payments will also be limited to a person or legal entity for a total of $ 125,000

The government's program to buy up to $ 1.2 billion in certain goods affected by trade-offs is managed by the USDA's Agricultural Marketing Service, officials from the USDA said they plan to do several purchases Months to cover orders d States to follow their various nutrition and nutritional programs.

The USDA plans to purchase goods in four different phases in the coming months, including changes in growth conditions, product availability and market conditions. The government said the purchase program will cover a wide range of agricultural commodities, from pork and dairy to fresh fruit and nuts.

The government is planning up to $ 85 million in dairy products in the food-buying program and up to nearly $ 560 million in pork products. There are also plans to buy nearly $ 93 million in apples, about $ 55.6 million in oranges, as well as more than $ 100 million in different nuts.

The foreign trade service will be responsible for the management of up to $ 200 million development of foreign markets for US agricultural products. Perdue said the trade promotion money will "help our American agricultural exporters identify and develop new markets to mitigate the negative impact of other countries' restrictions."

Farmers have become collateral damage from President Donald Trump's trade war with China. The US has imposed several tariffs on China, which has responded with its own list of tariffs that include not only agriculture but also cars and consumer goods in the United States. The president also threatens further trade measures against China, which could provoke even more reprisals on the part of Beijing.

The government's obligations on steel and aluminum imports have also resulted in new obligations being placed on US agricultural and food products by certain allies. including Mexico, Canada and the European Union.

This is the case since US farm income has fallen 50 percent since 2013 and is projected to decline 6.7 percent this year. This is the lowest nominal level since 2006, according to USDA estimates.

"The added burden of tariffs on the goods we sell to China, Canada, Mexico and the European Union was more than many farmers can bear" said the president of the American Farm Bureau Federation, Zippy Duvall, in a statement. "Today's announcement of the help gives us some breathing space, but many of us will go on for a few more months and the real solution to this trade war is to take a tough stand at the negotiating table and quickly find a solution with our trading partners" [19659002] Nearly $ 20 billion in US agricultural exports went to China last year, with more than $ 12 billion coming from soybeans. Cotton accounted for another $ 1 billion for exports to China, while pork and dairy products accounted for $ 600 million or more of each trade.


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