Trump Farm Aid

PUBLISHED: 7:01 PM 24 Jul 2018
UPDATED: 7:03 PM 24 Jul 2018

President Trump Unveils Crucial Farm Aid During Trade War

The president said that the program will spend money to help farms stay afloat during the ongoing trade war.

President Trump promised $12 billion in emergency farm aid during the recent trade war. Will it be enough to help farmers stay afloat?

As the trade war between China and the United States continues, it is likely that American citizens and businesses will feel at least some of the pain that the tariffs were meant to inflict. And, the war may go on for some time. It will take a while to undo decades of American exploitation.

Because of this, the Donald Trump White House and various executive agencies are stepping in to help those impacted by the tariffs. On Tuesday, the United States Department of Agriculture announced that it would be providing a $12 billion relief package for farmers in need of emergency aid due to the ongoing tariff struggles. This crucial ’emergency aid’ could very well keep vital farms afloat during these hard times.

Some time ago, as the trade war began to heat up, President Trump ordered Agriculture Secretary Sonny Perdue to prepare a range of several options for helping the farmers and others who might encounter issues due to the tariffs.

Now, it appears that they have settled on a $12 billion aid package, which will be disbursed through three mechanisms, all of which are run by the Department of Agriculture.

The funds will come in the form of direct assistance, as well as a purchase and distribution program, and even a trade promotion program.

The solution will rely on a Depression-era program that has been in existence since 1933, called the ‘Commodity Credit Corporation,’ which is a subdivision of the Agriculture Department.

The program was created in order to provide something of a financial ‘backstop’ for the farmers in the United States.

Because the program already exists, and has for nearly a hundred years, it’s action doesn’t require any sort of new approval from the bicameral legislature.

Due to the circumstances that led to its formation, the CCC doesn’t need to ask for any budget. It has the authority to borrow up to $30 billion from the Department of Treasury, with the express purpose of stabilizing, supporting, and protecting “farm income and prices.”

However, some republicans in the past have warned against using the group as a response to the trade war, and to possible negative consequences that could arise from such an act.

Many have suggested that there was a chance that the practices of the CCC could distort market prices, and could pay farmers for work that they didn’t do.

On Tuesday, a number of democrats and republicans condemned the plan, with some saying that it was a little better than corporate welfare.

Senator Bob Corker, a republican from Tennessee, said that the new policies put into place by the Donald Trump administration were essentially causing them to invoke a “welfare policy for our farmers,” who had repeatedly said that they were more interested in trade rather than welfare.

On Twitter, Senator Rand Paul of Kentucky said that if the tariffs are damaging the ability of farmers to make money, the answer is not to throw welfare at the farmers, but rather to fix the tariffs so the farmers can continue to sell their goods around the world.

In the past four months, the Trump White House has placed a number of tariffs on China, the European Union, Japan, Mexico, Canada, and other nations.

However, those countries responded by placing tariffs on goods from the United States, including some countries that chose to place tariffs against the United States soybean crop, a cash crop that America mostly sent to China.

President Trump has said that this plan is aiming to force the nations to either negotiate a ‘fair trade’ deal with the United States of America, or to deal with tariffs that will decrease the ‘trade deficit’ between the U.S.A. and other nations.

Some have suggested that by using the CCC to offset bad policy, Donald J. Trump is simply offsetting bad policy with bad policy.

Former Congressional Budget Officer Douglas Holtz-Eakin said that the policy is a misuse of the CCC and its ability to borrow from the Treasury Department.

This week, Donald Trump will meet with the President of the European Union, Jean-Claude Juncker, which means that the tariffs may have done their job, and the nation may see America and the EU’s top leaders work out their difference and negotiate a trade deal that is better for everyone.

However, the EU leadership has suggested that no big deals will be worked out in the upcoming days.

For now, all that the people of the United States can do is wait, and save money where they can. Hopefully, everyone agrees to come to the negotiating table soon, and the United States can work out its policies with the world where trade, free trade, is concerned.