US Farm Aid Package Includes Direct Payments to Farmers
$SOY, $CORN, $WEAT
Monday, the US Department of Agriculture (USDA) said its $12-B farm aid package would include $4.7-B in direct payments to farmers to help offset losses from retaliatory tariffs on American exports this season.
The bulk of the payments, $3.6-B, would be made to Soybean farmers. That amounts to 1.65/bu multiplied by 50% of production, Undersecretary for Farm Production and Conservation Bill Northey said.
China has traditionally bought about 60% of US Soybean exports but has been largely out of the market since implementing tariffs on US imports in retaliation for The Trump Administration’s tariffs on Chinese goods.
The aid package, originally announced in July, also includes payments for Sorghum of 86c/bu multiplied by 50% of production, 1c/bu Corn, 14c/bu bu Wheat, and 6c/lb of Cotton.
Payments for hog farmers will be $8 per Pig multiplied by 50% of 1 August production while for dairy farmers they are worth 12c/100wt per.
US Agriculture Secretary Sonny Perdue said the program would begin on 4 September to coincide with the Y 2018 harvest. Farmers will need to present production evidence to collect payments and payments are capped at $125,000 per person.
A 2nd round of payments may be evaluated depending on need.
The program will also include $1.2-B in purchases of commodities, including pork and dairy products, to be spread out over several months, officials said.
Secretary Perdue said the program will include some $200-M for a trade promotion program to develop new markets.
The package was seen as a temporary boost to farmers as the United States and China negotiate trade issues.