Overnight, Trump administration announced to offer up to USD 12B in aid to farmers that are affected by the the US trade war with other countries, notably China. The program included a mix of measures overseen by the USDA, including director payments to soybean producers, distribution assistance and international marketing. Trump said in the farmers will be the “biggest beneficiary” in what he’s doing on trade and ” watch, we are opening up markets, you watch what is going to happen, just be a little patient.”
The program is not generally welcomed by the industry though. Zippy Duvall, president of the American Farm Bureau Federation, the largest American farmer group said, “we cannot overstate the dire consequences that farmers and ranchers are facing in relation to lost export markets … and we will continue to push for a swift and sure end to the trade war.”
American Soybean Association said in a statement that “the announced plan provides only short-term assistance … ASA continues to call for a longer-term strategy to alleviate mounting soybean surpluses and continued low prices, including a plan to remove the harmful tariffs.”
Blake Hurst, a corn and soybean farmer and president of the Missouri Farm Bureau said “the payments will be helpful to farmers facing overdue loans and angry bankers, but are completely insufficient if they mean that tariffs and the trade war will last for the foreseeable future”. “They are a very temporary bandage to a self-inflicted wound.”
