ANNOUNCED AS TEMPORARYNo
On July 24, 2018 Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) will take several actions to assist farmers in response to the damage done by other countries’ retaliation against U.S. trade measures. Under President Trump’s direction, USDA will “craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally.” More precisely, USDA will respond to the estimated $11 billion impact of the other countries’ retaliatory tariffs on U.S. agricultural goods by authorizing up to $12 billion in programs that are intended to assist agricultural producers in meeting the costs of disrupted markets.
The administration observes that “a disproportionate amount” of the foreign retaliation “was targeted directly at American farmers,” affecting “a host of U.S. commodities, including field crops like soybeans and sorghum, livestock products like milk and pork, and many fruits, nuts, and other specialty crops.” The USDA announcement also said “there is evidence that American goods shipped overseas are being slowed from reaching market by unusually strict or cumbersome entry procedures, which can affect the quality and marketability of perishable crops.”
The USDA’s response will be based on three programs, namely the Market Facilitation Program, a Food Purchase and Distribution Program, and a Trade Promotion Program. By relying on its existing authorities, the administration appears to have avoided the necessity of seeking congressional approval for its plan. It is not yet clear what share of the planned $12 billion payments will be allocated to each of the three programs.
The Market Facilitation Program, authorized under The Commodity Credit Corporation (CCC) Charter Act and administered by Farm Service Agency (FSA), will provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy, and hogs. This support will help farmers manage disrupted markets, deal with surplus commodities, and expand and develop new markets at home and abroad.
⚑ Please report this page in case you detect an inaccuracy in its content.