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US farmers face 'financial calamity' without extra aid soon, Republican lawmakers say

As U.S. farmers enter autumn harvest season worried that low crop prices and a trade war could hurt their livelihoods, Republican farm-state lawmakers are urging President Donald Trump's administration to issue economic aid for farmers by year's end.

Discussions between lawmakers and the administration highlight the trade-offs Republicans face between loyalty to the president and representing constituents who have contacted their offices and flocked to town halls in their districts, worried about the impact of Trump's trade policies.

Four farm-state members of Congress told Reuters they are in talks with the U.S. Department of Agriculture and other administration officials about an aid package, ideally by the end of December.

Republican Senator John Hoeven, who leads agriculture funding on the appropriations committee, said he is discussing with the administration an approach similar to that taken during Trump's first term, when the federal government issued $23 billion in payments to farmers to offset losses from a trade war with China. He said emergency aid could also be added to a government spending bill.

Hoeven, of North Dakota, said farmers need assistance "the sooner, the better, but certainly by year-end."

On Monday, Agriculture Secretary Brooke Rollins said she is working daily with Congress, opens new tab to evaluate how much aid might be needed this autumn, but did not specify a timeline or amount.

A USDA spokesperson said officials were "exploring the need for further assistance but have not made a determination if an additional program is needed at this time." The spokesperson said Trump was supporting farmers by opening new international markets, lowering taxes and boosting farm supports in his tax-cut and spending bill.

“President Trump and Secretary Rollins are always in touch with the needs of our farmers, who played a crucial role in the President’s November victory," White House spokesperson Anna Kelly said in an email.

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Western Canadian Agriculture: Hard Times Made the World's Best Farmers

Video: Western Canadian Agriculture: Hard Times Made the World's Best Farmers

Western Canadian agriculture produced the most advanced farmers in the world not through abundance but through adversity. The crow rate fell. The wheat price went nowhere. The brown envelopes stopped.

When the subsidies disappeared, the bad farmers left and the good ones stayed. And the ones who stayed could not just grow wheat anymore. They started growing lentils and canola and peas and flax and faba beans. They built crop rotation. They got serious about agronomy because there was no government backstop. That process produced the Western Canadian agriculture Dennis Bulani describes in this clip: the most advanced, most educated farming culture in the world.

His contrast with Iowa corn and soybean farmers is sharp. At a DeKalb farmer meeting in Okoboji, Iowa, he asked what crop rotation they ran. Beans on corn stubble, corn on bean stubble. How do you fertilize? The co-op agronomist handles it. Have you considered other crops? No need. We make so much money on corn and soybeans. Western Canadian agriculture was never allowed that comfort. And now those Iowa farmers are watching soybean markets lock up with China and corn prices slide, and they do not have the agronomy knowledge or the research base to pivot. Western Canadian farmers adapted on a dime because they had done it before.

Dennis also makes the case that Western Canadian agriculture keeps adapting in real time. Low commodity prices over the past year have pushed growers to look seriously at precision spot-spray technology. He knows a neighbor who bought a sprayer with the seeing-eye system and sprayed only 80 out of 320 acres. As a chemical retailer Dennis acknowledges that will affect his sales. He supports it anyway, because if it advances Canadian agriculture and makes farmers money, that is a good outcome.

The lesson Dennis draws from the tale of two farms: continuous improvement is the only durable strategy. When canola was $22 a bushel some growers went to Arizona instead of the Crop Production Show. When the price came down those same growers came back to the research and the discipline. Products do not go on Rack Petroleum's shelves unless they pass a replicated trial first. That is what Western Canadian agriculture built through hard times: farmers who do the work whether the times demand it or not.

Dennis Bulani is CEO of Rack Petroleum and Ultimate Yield in Biggar, Saskatchewan. Dan Aberhart hosts GTF Productions, Western Canadian Agriculture's foremost live briefing platform and its foremost AI training platform for ag operators