Agriculture Secretary Sonny Perdue on Thursday (May 23) released the details of another round of trade aid for farmers impacted by retaliatory tariffs and trade disruption.
“President Trump has great affection for America’s farmers and ranchers, and he knows they are bearing the brunt of these trade disputes,” Perdue said. “In fact, I’ve never known of a president that has been more concerned or interested in farmer wellbeing and long-term profitability than President Trump. The plan we are announcing today ensures farmers do not bear the brunt of unfair retaliatory tariffs imposed by China and other trading partners.”
The trade aid package features a three-prong approach similar to the 2018 package. The components:
- Market Facilitation Program, which will provide $14.5 billion in direct payments to producers.
- Food Purchase and Distribution Program, which will use $1.4 billion to purchase surplus commodities.
- Agricultural Trade Promotion Program, which assists in developing new markets. A total of $100 million is allocated for this program.
More information will be released later, but here’s what we’re hearing from stakeholder groups:
“This trade aid will help repair some of the damage inflicted upon U.S. pork producers,” said David Herring, a pork producer from Lillington, N.C., and president of the National Pork Producers Council. "The U.S. pork industry has been one of the most adversely affected sectors, receiving a one-two punch in the form of a 50% punitive tariff from China on top of the existing 12% duty and, until recently, a 20% punitive tariff from Mexico.”
“While the share for dairy is not yet known, this trade relief package will include important market facilitation payments to dairy farmers as well as financial resources to continue USDA purchases of dairy products including fresh, nutritious milk to benefit food banks and food insecure Americans,” said Michael Dykes, CEO and president, International Dairy Foods Association. “Retaliatory tariffs by China and other important markets have led to huge losses for our IDFA members while the Chinese market has increased dairy imports since the initial tariffs went into effect last July. Sales of U.S. dairy to China are down through March, with U.S. cheese exports declining 44% and U.S. whey to China falling 32% during the past nine months. What we need is a predictable, transparent and rules-based system of international trade that provides the agricultural economy with certainty and a clear path to growth.”
Source: USDA, National Pork Producers Council, International Dairy Foods Association, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.