The Trump Administration announced its $12 billion plan to help farmers struggling under the escalating trade wars.
Politico says there are still important details to be worked out, including just how much help farmers will get and how they’ll prove economic harm. More details are scheduled to come out after Labor Day. USDA Chief Economist Robert Johansson says soybean farmers, who are big exporters, are expected to benefit the most. In addition, farmers won’t know until harvest exactly how much assistance they’ll be eligible for.
The USDA is relying on mechanisms authorized under the charter act of the Commodity Credit Corporation, which is a government-owned bank used to support or stabilize prices. That means it doesn’t require approval from Congress. However, the specifics of the plan will still be subject to a federal rulemaking process. The three-part plan will aid farmers through programs that are focused on payments, purchases, and trade promotion efforts.
Ag Secretary Sonny Perdue says the plan incorporates functions of the Farm Service Agency, Agricultural Marketing Service, and the Foreign Agricultural Service.