White House to Support Farmers Hurt by Trade Wars

President Trump has rolled out a $16 billion plan to help farmers hit by the trade conflict with China.

The plan, which does not require congressional approval, largely consists of direct payments to U.S. farmers. The payments echo a similar program last year that was funded at $12 billion.

The action comes as prices for commodities such as soybeans and sorghum, already mired in a yearslong slump and hit by flooding and wet weather, fell last week to their lowest level in more than 10 years.

“Farmers themselves will tell you they’d rather have trade than aid,” said Agriculture Secretary Sonny Perdue, but in the absence of a deal, “they’ll need some support.”

Talks with China broke off May 10 after months of hopeful signs for a deal. Trump and President Xi Jinping of China are expected to rekindle talks at the Group of 20 leading world economies in late June, similar to when the two men restarted negotiations at last year’s G-20 in Argentina.

Some farm groups cheered the new aid package, saying it would help cushion the blow. “We thank President Trump for recognizing that our patriot farmers have borne the brunt of China’s trade retaliation,” said David Herring, a North Carolina pork producer and president of the National Pork Producers Council.

Herring said U.S. pork producers were also anxious to reopen trade with China to take advantage of an “historic sales opportunity,” referring to the deadly virus that has decimated China’s hog herds and prompted buyers there to purchase more meat from U.S. producers.

Others remained critical of trade conflicts that they said have exacerbated existing problems in the Farm Belt.

“Our ongoing trade wars have destroyed our reputation as a reliable supplier and have left family farmers with swelling grain stores and empty pockets,” said Roger Johnson, president of the National Farmers Union.

In the 2018 program, farmers received payments for different crops. Under this year’s program, the money will be distributed based on USDA’s estimate of the economic damage inflicted on different counties.

Source: Wall Street Journal