It seems the Trump administration finally has a plan to bail out American farmers feeling the pain of the deepening trade war with China. But will the plan bring real relief to strapped agriculture markets, or is it a band-aid on an open wound?
Prices on farm commodities like corn and soybeans have been cratering for months as trade relations between China and the U.S. have worsened, leading to worries that farmers may lose access to China’s invaluable food markets. On Tuesday, Politico and the Washington Post reported that the Trump administration was prepared to announce their solution: a $12 billion package of emergency aid distributed to farmers hit hardest by crashing markets. According to WaPo, the plan will rely on a 1933 program called the Commodity Credit Corporation, which allows the Agriculture Department to “borrow up to $30 billion from the Treasury Department to stabilize, support, and protect farm income and prices.”
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