Market Facilitation Program

Trump trade war had ‘winners and losers’

When Trump appointees at the USDA parceled out trade war assistance to farmers, they exaggerated the damage in 2019 and over-compensated corn and wheat growers, said a congressional agency on Monday. "This report confirms that the Trump USDA picked winners and losers in their trade programs and left everyone else behind," said Senate Agriculture chairwoman Debbie Stabenow, a Michigan Democrat.

Half-a-billion dollars in additional trade-war payments

Big farmers collected an additional $519 million in trade-war payments in 2019 because of the high payment limits written into the so-called Market Facilitation Program by the Trump administration, said a congressional report on Monday. Michigan Sen. Debbie Stabenow, senior Democrat on the …

Chance of trade war payments ‘less than 10 percent’

Agriculture Secretary Sonny Perdue said the odds of a multibillion-dollar round of trade war payments to farmers this year are “less than 10 percent,” although a senior lawmaker said the payments may be "absolutely vital" for survival in the Farm Belt. China will turn to the U.S. market for soybeans “late this spring, this summer,” Perdue predicted during a House Agriculture hearing on Wednesday.

If exports rise, farmers won’t need trade aid, says Perdue

U.S. ag exports have gained limited traction from President Trump's ballyhooed trade victories, but Agriculture Secretary Sonny Perdue is optimistic that demand will improve. "I hope we can show that a third round [of trade war payments] is not needed for 2020," Perdue said in a statement. "We still believe farmers want trade rather than aid."

Trump tariff payments bolster farmer income

Although ag bankers in the Midwest and Plains say the administration's multibillion-dollar trade war payments were a boon to farmers and ranchers, some lenders are still concerned about underlying weaknesses in the sector.

Trade war aid outweighs Trump’s cuts in crop insurance and farm subsidies

This week's White House budget proposal to cut crop insurance by 31 percent and to tighten eligibility rules for farm subsidies would save less in 10 years than the administration spent to mitigate the impact of the Sino-U.S. trade war on 2018 and 2019 farm production, said an economist.

Give trade agreements time to work, says FCA chief

The chairman of the Farm Credit Administration appealed for Farm Belt patience on Trump trade agreements on Wednesday. "The groundwork has been laid for trade normalization and improved farm prices," said Glen Smith during a House Appropriations subcommittee hearing.

Trade war aid is slanted in favor of the South, says Stabenow

Farmers and ranchers are on their way to receiving $14.5 billion in trade war payments on their 2019 production, but that aid is skewed toward large farms and Southern states, said the senior Democrat on the Senate Agriculture Committee on Thursday.

U.S. heads for highest farm income in seven years

Thanks to a steady recovery, U.S. farm income this year will be the highest since 2013, the peak of the commodity boom, said the government on Wednesday. The USDA forecast net farm income, a broad measure of profits, at $96.7 billion this year, with higher crop and livestock revenue offsetting the end of two years of mammoth Trump tariff payments.

‘Tough year,’ says Perdue as USDA boosts trade-war payments to $14.5 billion

At the same time he saluted the de-escalation of the Sino-U.S. trade war, Agriculture Secretary Sonny Perdue announced on Monday the release of $3.6 billion in trade-war payments to farmers and ranchers. The money will raise the total for Trump tariff payments to producers to mitigate the impact of retaliatory tariffs on 2019 production to $14.5 billion.

Assessing the 2020 candidates on trade, from Trump’s unilateralism to ‘insular’ Warren and Sanders

President Trump employs a policy of “aggressive unilateralism” that views agriculture’s trade war losses as collateral damage that can be mitigated by a multibillion-dollar bailout, say the authors of a paper on the 2020 presidential race. The paper says Michael Bloomberg is “perhaps the strongest supporter of free trade among the various Democratic candidates” while Sens. Bernie Sanders and Elizabeth Warren “are the most protectionist.”

As Senate passes USMCA, Trump tells farmers to remember the trade war money

As President Trump scored his second trade victory in two days, Senate approval of the United States-Mexico-Canada Agreement, he asked farmers on Thursday to remember the billions of dollars they had received in trade war payments.

Farmers borrow less, and tariff payments may be why

Agricultural lending declined during the second half of 2019, and while that reflected lower production costs, it “likely also was due to an increase in revenue from government payments (Market Facilitation Program) connected to trade disputes that lingered through the year,” said the Federal Reserve on Thursday.

China may agree to buy U.S. ag exports, but a final tranche of cash to farmers is still likely

On the same day that China and the United States tentatively reached a “phase one” agreement on a trade deal, Agriculture Secretary Sonny Perdue said that he expects producers will still receive the final $3.6 billion in trade war payments President Trump authorized last spring.

Keep trade war payments flowing, say ag bankers

The Trump administration has sent $10.5 billion in cash to producers since mid-August to mitigate the impact of the Sino-U.S. trade war, aid that comes on top of $8.6 billion paid for 2018 crops and livestock. “Yes, [the payments] are helpful,” said a Kansas banker on Wednesday — and the government should keep writing the checks.

Perdue says second tranche of Trump tariff payments is on its way

Farmers can expect a cash injection of billions of dollars in Trump tariff payments later this month or in December, said Agriculture Secretary Sonny Perdue on Thursday. “We hope that trade will supplant the need for aid in 2020,” he said, pointing to progress in negotiations to resolve the Sino-U.S. trade war.

Stopgap funding bill includes money for Trump tariff payments

As expected, House Democrats included funding for trade war payments to farmers and ranchers in a stopgap funding bill, released Wednesday, to keep the government running until Nov. 21.

‘Big pile of money’ for farmers could backfire in Congress

The Trump administration enabled multimillion-dollar payments to some large operators in this year’s round of trade war payments by obliterating the usual limits on farm subsidies, said the president of the National Farmers Union on Thursday.

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