The USDA anticipates it will announce payment rates before the end of this year for the second round of Trump tariff payments, said an agency spokesperson on Wednesday. The news followed a published report that the White House was delaying the payments. Meanwhile, traders said China had purchased U.S. soybeans for the first time since President Trump met with Chinese president Xi Jinping early this month.
“Secretary Perdue was clear last week that we are in the final stages of confirming our commitment to American farmers,” said the USDA spokesperson. “We are in discussions with the White House and anticipate that the second round of payments for the Market Facilitation Program will be published before the end of the year.”
Some $4.7 billion was made available to crop and livestock producers in the first round of Trump payments. The USDA initially said an announcement on the second round would be made around Dec. 3, though so far that has not happened. Citing three unnamed sources, Reuters said the White House was holding up the payments in hopes of a revival of exports to China and because of the high cost of the bailout.
According to traders, Chinese importers bought 500,000 tonnes (18.4 million bushels) or more of U.S. soybeans for shipment between next January and March. The sales are small compared to the record-large U.S. soybean crop and past purchases that equaled 1 of every 3 bushels of U.S. beans. All the same, the news sent soybean futures prices soaring briefly.