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Trump to begin new round of trade-aid payouts to farmers

The Agriculture Department will begin distributing another round of tariff relief payments next week to farmers and ranchers burned by President Donald Trump’s trade war.



The Trump administration has already paid farmers at least $6.7 billion for their 2019 production, on top of $8.6 billion provided for last year’s production and additional trade relief efforts like commodity purchases and marketing assistance. The first set of 2019 payments covered 50 percent of a farmer's eligible production; the new funds announced Friday will cover an additional 25 percent.

Row crop growers, hog farmers and dairy producers have received the most funds so far under the program, according to USDA.

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A potential third round of direct aid could follow in January, if needed. That would bring the total aid for 2019 production to $14.5 billion.

“This second tranche of 2019 [Market Facilitation Program] payments, along with already provided disaster assistance, will give farmers, who have had a tough year due to unfair trade retaliation and natural disasters, much needed funds in time for Thanksgiving,” USDA Secretary Sonny Perdue said in a statement. Perdue last week had flagged that the second batch of aid was imminent.

Several members of the Trump administration have said in recent days that the U.S. and China are closing in on a partial trade deal that would include huge Chinese purchases of American farm goods. A possible third and final round of 2019 payments “will be evaluated as market conditions and trade opportunities dictate,” the department said in its announcement.

Perdue hasn’t ruled out yet another trade relief program for 2020 production, but he suggested that an agreement with China would preclude the need for an additional taxpayer bailout. “We’re hopeful that trade would supplant any type of farm aid needed in 2020,” he told reporters last week.

Producers can apply for direct payments at Farm Service Agency offices until Dec. 6.

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