USDA Announces $12 Billion Short-Term Tariff Relief Program

Agriculture Secretary Sonny Perdue announced a $12 billion program to help farmers who are currently bearing the brunt of President Trump’s trade tactics.  The programs include a market facilitation program which would result in farmer payments, a food purchase and distribution program which would purchase surplus of goods going to nutrition programs, and a trade promotion program to provide private sector assistance to new markets.  “The Trump Tariff Aid plan draws on the financial resources of a program known as the Commodity Credit Corporation (CCC) and Section 32 funding,” said Jim Wiesemeyer Pro Farmer’s Washington policy analyst. “The initiative does not authorize any new money and thus not need approval from Congress. But U.S. taxpayers will see deficits go still higher.” Officials called this program a "one-time" action. While farmers should be prepared to take advantage of the program, how it will actually work is still unclear.“USDA says it will take some time to develop the needed rules and regulations for the efforts and there will be a Federal Register notice published,” Wiesemeyer said. “There will be a relatively simple signup —producers will need to tell USDA what their 2018 production is for the crops targeted, and that level of what they actually produced times a payment rate and producers would get a payment based on that formula.”Specific details for how the program will work, how the program will be implemented and how farmers can sign up for payments have not been announced. According to USDA undersecretary, Greg Ibach, the details will be released closer to Labor Day when USDA plans to fully implement the program.