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Small group of America’s big farms gets bulk of Trump bailout

A tenth of US farm operators have received more than half the money from a federal bailout designed to offset the costs of the Trump administration’s trade battles, data show. Some use legal loopholes to collect multiples of a $125,000 cap on payments. The government had doled out $8.5bn ahead of last Friday’s application deadline for farmers, the US department of agriculture said. The White House launched the Market Facilitation Program in September after China, Mexico and other countries fought back against US tariffs by raising duties on American farm goods, depressing their price. The payments reflect the farm sector’s political clout in Washington. No other US industry has received direct payments to relieve losses caused by tariffs.  Between September and mid-April, $4.5bn of MFP payments went to 10 per cent of recipients, according to records the Financial Times obtained under the US Freedom of Information Act. The government limited payments to $125,000 per person or legal entity in each of three commodity categories. Farmers were also ineligible if their adjusted gross income topped $900,000. The records showed that more than 3,000 farm businesses got paid in excess of $125,000 within a single category, however. More than 100 received at least $500,000 and a handful collected almost $1m.

 

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Financial Times
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