Agriculture Bill

Trump administration delivers $16 billion “bailout” to farmers

We could take credit…but it wouldn’t be very convincing. Plenty of U.S. citizens anticipated some form of reaction from President Trump after weeks of vocal criticism of his administration and Congress had amplified from the agricultural sector. You certainly didn’t have to be a journalist to predict this. Then again, our top executive is the ultimate wild card; the epitome of unpredictable. With that being said, Trump’s $16 billion “bailout” to farmers—a second round of aid bringing the grand total to around $28 billion—was already somewhat committed ever since his pledge to support the agricultural sector in 2017.

The Trump administration rolled out a second round of aid for farmers last Thursday (just after press time of our last newsletter) who have been stung by its yearlong trade war with China, bringing the price tag of bailout efforts so far to about $28 billion. The original bill included plans for approximately $867 billion over the next ten years.

About $14.5 billion worth of direct payments will be made to farmers through the subsidy program, the Department of Agriculture said, while another $1.5 billion is set aside for commodity purchases and marketing efforts.

The new package mirrored a $12 billion aid package announced last year, which provided direct and indirect payments to farmers after China placed retaliatory tariffs on agricultural products from the US. That move has blocked American farmers from one of their biggest customers, sending prices and exports of commodities sharply lower.

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