USDA has $12 billion plan to help farmers hurt by trade war - Entrepreneur Generations

The Department of Agriculture is about to announce "a $12 billion package of emergency aid for farmers caught in the midst of President Trump’s escalating trade war," The Washington Post reports, citing "two people briefed on the plan" and calling it "the latest sign that growing tensions between the United States and other countries will not end soon." President Trump plans to talk about trade issues in a trip to Illinois and Iowa on Thursday.

The package "is expected to target soybean farmers, dairy farmers, and pork producers, among others," and is expected to take effect by Labor Day, "just as voters in some of the most heavily impacted states are preparing to cast votes in the midterm elections. There are several key Senate races in farm-dependent states like Missouri, North Dakota, and Indiana this November, and the outcome of those races could determine who controls the chamber next year. . . . White House officials hope it will temporarily quiet some of the unease from farm groups, but the new plan could revive debates about taxpayer-funded bailouts and the degree to which Trump’s trade strategy is leading to unforeseen costs."

The plan will use direct assistance, a program to buy and distribute food, "and a trade promotion program," the Post reports. It will use USDA's existing Commodity Credit Corp. so it will not require approval by Congress, though the CCC has not been used to mitigate the impacts of trade disputes. "Some Republicans several months ago had warned against using the CCC as part of a trade-war related bailout, saying it could distort market forces and pay farmers for products they don’t produce," the Post reports. "And there was bipartisan criticism from Republicans and Democrats on Tuesday to what the White House was trying to do. At least two Republicans said the plan equated to a type of welfare program for farmers:" Sens. Bob Corker of Tennessee and Rand Paul of Kentucky.


from The Rural Blog https://ift.tt/2v2bmZL USDA has $12 billion plan to help farmers hurt by trade war - Entrepreneur Generations

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