With its new offer of $14 billion in coronavirus relief, the Trump administration could spend $50 billion — quadruple the cost of the auto industry bailout — in less than three years to buffer the impact of trade war and pandemic on agriculture. Farm groups welcomed the second round of coronavirus assistance while critics said it was "old-fashioned vote-buying" ahead of the Nov. 3 presidential election.
The expected six-month review of the Sino-U.S. trade agreement failed to materialize on Saturday but President Trump expressed satisfaction with the increasing pace of farm export sales to China. During a news conference, Trump said, "China has been buying a lot of — a lot of things, and they're doing it to keep me happy but they're dreaming about Joe Biden."
The 2018 farm law allows an additional 3 million acres into the land-idling Conservation Reserve, partly to offset the low market prices that followed the collapse of the commodity boom earlier this decade. Lawmakers may opt for another expansion of the reserve if farmers face mountains of surplus grain and continued low prices, said two University of Illinois economists.
If 2019 was stressful for farmers and ranchers, with low commodity prices and bad weather for crops, the coronavirus crisis is compounding the economic challenges this year, said three Federal Reserve banks in recently released quarterly reports. (No paywall)
Farmers and ranchers will need assistance from the federal government beyond the $16 billion in cash payments that were promised a month ago, said Agriculture Secretary Sonny Perdue. During a broadcast interview, Perdue said producers will be eligible for more than the $125,000 per commodity that was proposed by the USDA.(No paywall)
Farmers will get cash payments of up to $250,000 apiece — possibly more, depending on the rules — to survive an estimated 20-percent drop in farm income this year due to the coronavirus pandemic. President Trump announced $16 billion in direct agricultural aid and said additional money might be be spent this summer to bolster the sector.(No paywall)
The government could spend $25 billion, or more, to help the farm sector survive the coronavirus pandemic and the accompanying economic slowdown, said Agriculture Secretary Sonny Perdue on Thursday. If that happens, the administration will have spent more than $50 billion in three years to mitigate the impact of catastrophic disease and trade war on U.S. agriculture. (No paywall)
In its first assessment since the coronavirus was declared a pandemic, the government forecast lower prices for U.S. crops and livestock as a worldwide economic slowdown, the result of aggressive efforts to squash the virus, weakens the global appetite for food. The notable exceptions are wheat and rice, where panic buying has driven up prices for the food grains, said the USDA on Thursday. (No paywall)
Congress allotted $23.5 billion for agriculture in the coronavirus relief package, but "that amount of money will not sustain" the farm sector, said the president of the largest U.S. farm group. The sector will need "a whole lot more [money] than was in the CARES Act," said Zippy Duvall of the American Farm Bureau Federation.(No paywall)
Out of the $23.5 billion earmarked for agriculture in the latest coronavirus relief package, "I think at least $9 billion will be going to livestock producers," said Senate Agriculture chairman Pat Roberts on Wednesday.(No paywall)