Accordingly, this is the second aid round amid negotiations with Beijing that continue to stand in a deadlock. Farmers received $ 10 billion in aid last year when trade conflicts lasted longer than expected.
According to CNN, the US government will also buy surplus products affected by war and distribute these foods to food banks, schools and pay for agricultural transaction support organizations. . In total, the value of this second package - including the above $ 14.5 billion - is worth $ 16 billion.
Farmers in the south are expected to enjoy higher compensation rates than the Midwest. In this new support package, the US Department of Agriculture (USDA) said it will compensate farmers by geographic location, not on the same items as last year’s support package. According to the pay rate analysis by Reuters news agency, farmers in cotton-growing states in the Mississippi River Delta will be the ones who benefit the most from this program.
The program will also pay farmers to grow soybeans, corn, wheat, sorghum and cotton; produce pork and milk, as well as farms that grow 10 specialty crops, including almonds, pistachios, walnuts, blueberries and cherries. The amount of money each household receives will depend on the area that the household owner has planted and the rate will depend on the locality. The lowest price paid will be 15 USD / 1 hectare.
Over the past few years, American farmers have been the hardest-hit victims of China’s retaliation against products such as soybeans, corn and wheat. Tariffs have made US agricultural products more expensive than affordable to Chinese importers. Nearly all importers stopped buying US soybeans and caused US inventories to exceed record levels by the end of 2018.
Along with that, since the 1980s, American farmers also have to face the weather and flu epidemic of Africa ... This is unprecedented with American farmers, and leads to a decrease in net income. up to half since 2013, and will likely bring a debt of about 427 billion dollars in 2019.
Although trade deals with China were restored after a meeting with Chinese President Xi Jinping and Beijing agreed to buy US agricultural products. However, President Donald Trump said that until now, China has not bought any agricultural products.
On the other hand, USDA chief economist Rob Johansson said that the experience from the first round of US bailouts showed that compensation for American farmers is asking many questions about transparency and fairness in manure. initial analysis from EWG on first aid, paid until October 31, 2018, showing that major disbursements were transferred to large farms, enough to collect tens of millions of subsidies. USD during 1995 - 2017.
“The biggest disbursements fall into the richest farmers. This is not surprising by the payment method based on the area of production. Therefore, the largest farms will receive the largest share, leading to the small and medium-sized farmers who need the most help only receive the smallest portion , " Rob said.
Lllinois State Agriculture Agency said that such financial support from the government is not a long-term solution. Agricultural organizations continue to urge the Trump government to end trade wars and reach an agreement with other leading export markets; At the same time, it provides opportunities for countries to increase purchases of goods from the US, reducing trade deficits.
