By Ryan Hanrahan
Reuters’ Susan Heavey and Leah Douglas reported earlier this week that “the Trump administration expects to announce an aid package for U.S. farmers within two weeks and a deal on Chinese soybean purchases, U.S. Agriculture Secretary Brooke Rollins said on Monday, without providing further details.”
“The administration of President Donald Trump has said for months that it would issue aid for farmers hit by low crop prices and trade disputes, but has not yet issued any plan or amount for the aid. U.S. farmers lost billions in soybean sales this year as top buyer China turned to Brazil and Argentina amid tense trade talks with Washington,” Heavey and Douglas reported. “‘We’ll have an announcement probably in the next week or two on what that’s going to look like,’ Rollins, the head of the U.S. Department of Agriculture, told CNBC of the farmer aid.”
“The American Farm Bureau Federation said on Monday that the aid is ‘urgently needed’ as farmers face the compounding pressures of higher input costs and lower crop prices,” Heavey and Douglas reported. “In October, after Trump met with Chinese President Xi Jinping in South Korea, China agreed to buy 12 million metric tons of American soybeans through January, according to the Trump administration. China purchased nearly 1.6 million metric tons of soybeans over three days last week, its largest single-week tally in two years, buoying crop prices.”
Economists Say Aid Likely to Keep Input Prices High
AgWeb’s Tyne Morgan reported that “as financial pressure continues to grip agriculture, Secretary of Agriculture Brooke Rollins says trade aid could come as soon as next week. But with ongoing discussions about potential tariff-related assistance, the November Ag Economists’ Monthly Monitor found economists are mixed about the possible impact on the farm economy and whether the payments will keep input prices high.”
“Farm Journal’s November Ag Economists’ Monthly Monitor reflects a divided view on whether additional trade aid is needed,” Morgan reported. “Exactly half of economists say yes, trade aid is still necessary, while the other half say no.”
Source : illinois.edu