USDA official casts doubt over a second round of farm aid
Trump administration announced a $12B bailout for farmers last week
The US Department of Agriculture is unlikely to do a second-round package of aid for struggling farmers struggling in the midst of trade tensions and low crop prices.
That’s according to Richard Fordyce, an agency undersecretary, who spoke in an interview on Thursday and cited current budget constraints.
“We’re kind of where we are and that’s kind of going to be it — just based on dollar availability” at the USDA, Fordyce said in an interview with Bloomberg. He was unclear if Congress might step in to contribute more funds for additional aid.
His comments come after the Trump administration last week announced a $12 billion bailout for farmers. Growers have responded to the funds by welcoming the relief, but saying that it’s unlikely to kickstart a lasting recovery for the American farm economy.
Meanwhile, Fordyce said the USDA next week plans to announce the crop-specific rates that will determine how much financial help individual farmers can expect from the aid package. Crop producers have been eager to know the per-acre rates that commodities like soybeans, corn, wheat, rice and sorghum will receive because it is key information they can use to talk to banks and lenders and plan for next year.
The agency, Fordyce said, has been collecting acreage data submitted by farmers to help them fine tune the rates based on how many need help. Growers have until Friday to submit the information.
“They’re going to be unique to the crop, based on cost of production, based on the price of that crop,” Fordyce said of the rates. “We just don’t have enough money to pay 100% of the difference between the cost of production and the price, but we’re going to do all we can.”
The help comes as the agriculture industry has been caught up in a trade war. US tariffs and retaliation from trading partners shifted typical export flows, including pushing China to avoid American soybeans for much of this year.
China recently resumed sourcing oilseeds from the US to meet a 12-million ton pledge the US says Beijing agreed to following a late October meeting between President Donald Trump and his Chinese counterpart Xi Jinping.
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