In this file:

 

·         Trump's Plan to Bail Out Farmers During the Trade War Could Backfire

Corn and soybeans—the crops that have been hardest hit by the tariffs—are typically used for animal feed, not human consumption.

 

·         ‘Grimmer by the day’ — Farmers’ love for Trump in peril

President’s trade actions are testing farmers in ways they never imagined

 

·         Trump says U.S. farmers to get $15 billion in aid amid China trade war

... “We’re going to take the highest year, the biggest purchase that China has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well,” Trump told reporters at the White House...

 

 

 

Trump's Plan to Bail Out Farmers During the Trade War Could Backfire

Corn and soybeans—the crops that have been hardest hit by the tariffs—are typically used for animal feed, not human consumption.

 

Emily Moon, Pacific Standard

May 13, 2019

 

President Donald Trump escalated the United States' trade war with China over the weekend, sending markets into a tailspin and alarming business and agriculture leaders. After trade talks broke down last week, the Trump administration increased tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent. By Monday, China had retaliated in kind, raising tariffs on nearly $60 billion of American goods.

 

Recent analysis has shown that the costs of Trump's tariffs fall on domestic consumers, as household goods become more expensive. The trade war has also hit the agriculture, retail, and manufacturing industries, all of which rely on China's goods or its business: In 2017, the U.S. exported 60 percent of its soybean crop to China, the world's largest importer of soybeans.

 

Now, Trump's plan to deal with this loss—subsidizing the crops China refuses to buy and sending them to "needy countries"—has provoked almost as much ire as the continued onslaught of tariffs.

 

Trump's Plan Involves Humanitarian Aid

 

Trump has proposed using the excess crops as a form of humanitarian aid, a plan that critics warn could backfire for both U.S. farmers and those in developing countries. The U.S. will "spend (match or better) the money that China may no longer be spending" on American agriculture commodities "and distribute the food to starving people in nations around the world!" the president said in a tweet on Sunday.

 

Realistically, the administration could use two federal programs aimed at fighting famine abroad to pass off these crops to developing countries, Reuters reports. But in the 2018 budget, the Trump administration already proposed cutting funding for one of these—Food for Progress—and entirely eliminating the other, Food for Peace, a program dedicated to ending world hunger.

 

Moreover, the crops that have been hardest hit by the tariffs, corn and soybeans, are typically used for animal feed, not human consumption. According to experts at the Michigan State University Extension, 98 percent of U.S. soybean meal goes to feed poultry, hogs, and cattle—and only 1 percent goes to humans. Most of the country's corn is used for ethanol, feed, or high-fructose corn syrup.

 

Dumping Grains in Developing Countries? ...

 

more

https://psmag.com/news/trumps-plan-to-bail-out-farmers-during-the-trade-war-could-backfire

 

 

‘Grimmer by the day’ — Farmers’ love for Trump in peril

President’s trade actions are testing farmers in ways they never imagined

 

Patricia Murphy, Opinion, Roll Call

May 14, 2019

 

OPINION — The love affair between President Donald Trump and rural America has always made sense to me.

 

When I covered the 2016 presidential campaign, Trump often went to remote farm communities where Democrats, and even other Republican candidates, never bothered.

 

The image of a New York billionaire holding a rally down the street from an Alabama Dollar General might have seemed hilarious to some reporters, but to the farmers and their families at those rallies, a rich, television celebrity coming to their hometown made them feel important and even hopeful that someone like him would value a place like theirs. The details of his policies weren’t important at those rallies. It was about the way he made them feel.

 

But that feeling is being tested in ways even American farmers never imagined, despite the fact that Trump, as a candidate, told them exactly what he would do as president when he was elected.

 

“You know, China?” he asked a rally in Clear Lakes, Iowa, in 2016. “What they’re doing to us in trade is unbelievable. They’re killing us. It’s one of the great thefts in the history of the world.”

 

Even in a state like Iowa, where farmers rely heavily on Chinese markets to buy their crops, the crowd nodded and cheered as Trump promised to make China play by the same rules as America. “Everybody has great confidence in me, with China, with all these places. And don’t worry about it. We’ll take great care of the situation.”

 

But since 2016, some of those same farmers have been doing almost nothing but worry. Delivering on his promise to be tough on China, Trump imposed a 25 percent duty on $50 billion worth of Chinese goods in July of 2018, and later, another 10 percent tariff on $200 billion more of Chinese products.

 

China responded in kind with tariffs on peanuts, cotton, sorghum, pecans and a host of other agricultural products. American commodity prices collapsed as demand fell from the country that many American farmers counted as their single largest buyer.

 

The love affair is over ...

 

A tall order ...

 

more, including links  

https://www.rollcall.com/news/grimmer-day-farmers-love-trump-peril

 

 

Trump says U.S. farmers to get $15 billion in aid amid China trade war

 

Reporting by Jeff Mason; Additional reporting by Rod Nickel in Winnipeg, Manitoba; Writing by Tim Ahmann and Humeyra Pamuk; Editing by Jonathan Oatis and Peter Cooney, Reuters

May 13, 2019

 

WASHINGTON (Reuters) - President Donald Trump said on Monday that his administration was planning to provide about $15 billion in aid to help U.S. farmers whose products may be targeted with tariffs by China in a deepening trade war.

 

“We’re going to take the highest year, the biggest purchase that China has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well,” Trump told reporters at the White House.

 

He did not provide more details on what kind of an aid package it would be.

 

American farmers, a key constituency of Trump, have been among the hardest hit in the trade war. Soybeans are the most valuable U.S. farm export, and shipments to China dropped to a 16-year low in 2018. Sales of U.S. soybeans elsewhere failed to make up for the loss. U.S. soybean futures fell to their lowest in a decade on Monday.

 

U.S. Agriculture Secretary Sonny Perdue said on Friday that Trump had asked him to create a plan to help American farmers cope with the heavy impact of the U.S.-China trade war on agriculture.

 

A new aid program would be the second round of assistance for farmers, after the Department of Agriculture’s $12 billion plan last year to compensate for lower prices for farm goods and lost sales stemming from trade disputes with China and other nations.

 

“Out of the billions of dollars that we’re taking (in on tariffs on Chinese imports), a small portion of that will be going to our farmers, because China will be retaliating, probably to a certain extent, against our farmers,” Trump said.

 

The tariffs are not paid by the Chinese government or by firms located in China. They are paid by importers of Chinese goods, usually American companies or the U.S.-registered units of foreign companies.

 

On Monday, China said it would impose higher tariffs on a range of U.S. goods, including frozen vegetables and liquefied natural gas, striking back in its trade war with Washington after Trump warned it not to.

 

Last year, Beijing imposed tariffs on imports of U.S. agricultural goods, including soybeans, grain sorghum and pork as retribution for U.S. levies.

 

While farmers have largely remained supportive of Trump, many have called for an imminent end to the trade dispute, which propelled farm debt to the highest levels in decades and worsened credit conditions for the rural economy...

 

more

https://www.reuters.com/article/us-usa-trade-china-agriculture/trump-says-u-s-farmers-to-get-15-billion-in-aid-amid-china-trade-spat-idUSKCN1SJ22Z