Economy

We Might See More Bailouts for Farmers

JM Ashby
Written by JM Ashby

We've vaguely speculated that we could see more than one bailout as a result of Trump's global trade war, but this is the first time a Trump regime official has floated the possibility.

First, it appears that Trump's bailout for farmers harmed by his trade war won't be as juicy as originally reported. The $12 billion bailout will only include $4.7 billion in direct aid for farmers while the remaining money will be spent on promotions and direct government purchases of meat and crops.

Applications for relief will begin next week, but Agriculture Secretary Sonny Perdue says we could see more payments "in the coming months."

CHICAGO (Reuters) - The U.S. Department of Agriculture said on Monday its farm aid package would include $4.7 billion in direct payments to farmers to help offset losses from retaliatory tariffs on American exports this season.

An announcement about further payments will be made in the coming months if warranted,” Agriculture Secretary Sonny Perdue said. [...]

“Short-term aid does not create long-term market stability,” said Doug Schroeder, Illinois Soybean Growers vice chairman, in a statement after the announcement. “Producers need trade, not aid.”

Considering the number of hoops farmers will have to jump through to qualify for relief, I think there's a strong possibility this program will not pay out as much as the Trump regime says it will.

Moreover, Reuters reports that the Department of Agriculture will only reimburse farmers for 50 percent of their production whereas China was buying 60 percent before Trump's launched his trade war.

It would be understandable to assume that a bailout for his own base is something the Trump regime would make sure they get right, but I'm just not sure they're capable of getting it right. My gut says none of this is going to work out the way it's suppose to. I also expect it won't be very long after the payments begin that we'll learn this program has been abused and defrauded.

  • Trump will do this the same way he does everything. Announce it (already done), go home and declare victory. If he actually follows up I’ll be surprised.

  • muselet

    Before this is all over, a new cabinet-level department will have to be created: the Department of Cleaning Up Trump’s Messes.

    Its budget will be several times global GDP.

    –alopecia

  • David Greenberg

    A friend in my discussion group is a conservative from Iowa who is smart enough to hate trump and everything he does. He just returned from a visit to friends in Iowa. He reports that farmers who are going to be royally screwed by trump are still with him. They’re going to get what they deserve and their tears when they finally figure it out will absolutely not move me.

    • Aynwrong

      I’d say that those conservative farmers could use their tears to water their crops, but why water surplus?

  • mnpollio

    BUT….BUT…isn’t this SOCIALISM?!!! Don’t they hate socialism? How can this be?

    • Badgerite

      Sort of seems to be, doesn’t it. Maybe the labeling depends on who the aid goes to.