(WASHINGTON D.C.) — Many U.S. farmers say a newly announced $12 billion federal aid package will not be enough to offset mounting financial pressure caused by weak commodity prices, high input costs and lingering trade disruptions. The assistance, unveiled by the Trump administration, is designed as a temporary bridge for producers facing declining export demand and rising expenses.
Many farm groups and economists warn the payments may only partially cover losses, particularly for growers hit hardest by reduced overseas sales. Soybean producers remain among the most affected after years of reduced purchases from China, once the largest buyer of U.S. soybeans. Corn, wheat and specialty crop producers have also reported narrowing margins. USDA officials say the aid is intended to stabilize farm income while longer-term policy changes take shape. Still, some farmers argue the package does little to address structural trade challenges, including market access barriers and growing competition from foreign exporters.
Meantime, the Department of Agriculture does not plan to issue additional emergency farm aid beyond the recently announced $12 billion assistance package, even as financial stress deepens across the farm sector, said Richard Fordyce, USDA’s undersecretary for farm production and conservation.
Economists and farm advocates warn many operations may continue to struggle without further support or stronger export growth. U.S. agriculture has traditionally posted trade surpluses, but rising imports and slowing exports have pushed the sector into a widening trade deficit. That shift has weighed heavily on farm income, particularly for row-crop producers dependent on foreign markets. USDA officials say budget constraints and existing authorities limit the department’s ability to offer more aid in the near term. Many farmers, however, say long-term relief will depend less on direct payments and more on expanded trade opportunities.
SOURCE: NAFB News Service