Tariff Aid for
U.S. Farmers |
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Help is coming for farmers.
The Trump Administration recently announced a program
that will help farmers whose businesses will be negatively
affected by tarrifs imposed by China.
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China recently announced that it will levy an additional 25
percent Tarrif on $50 billion of U.S. imports.
On July 6, 2018 tarrifs on about $34 billion of those
imports went into effect.
It will cover agricultural products including;
soybean, corn, wheat, cotton, rice, sorghum, beef, pork,
poultry, fish, dairy products, nuts and vegetables.
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According to the
Office of the United States Trade Representative tariffs
and non-tariff barriers can disproportionately burden the
nearly 300,000 U.S. small- and medium-size (SME) businesses
exporting to foreign markets.
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The program announced by the Trump administration will make
an estimated $12 billion in government assistance available,
including direct payments to growers.
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President Trump's Tariff Aid plan draws on the financial
resources of an existing program known as the Commodity
Credit Corporation (CCC) and Section 32 funding.
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The
Department of Agriculture (USDA) officials say the aid
will be available in three forms;
1.
Direct payment to producers of soybeans, sorghum, wheat,
cotton, dairy and hogs.
2.
Government purchases of fruit, nuts, legumes, and some meats
for distribution to food banks.
3.
Development of new export markets.
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The for the program will be secure from the U.S. Treasury
and does not require Congressional approval.
This procedure was put in place during the Depression
ear.
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According to numbers recently published by the USDA the
value of U.S. exports and imports of agricultural products
have been on the decline.
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For farmers in the U.S. 20 cents of every dollar of their
income relies on trade.
Because of this these additional measures will also
be in place to assist farmers.
They include:
-The Market Facilitation Program:
authorized under the Commodity Credit Corporation
(CCC) Charter Act and administered by the Farm Service
Agency (FSA).
This program helps farmers to gain access to other markets.
-Food Purchase and Distribution Program:
under this program surplus goods are purchased from
farmers and goes to nutrition programs.
This will be administered by the
Agricultural Marketing Service (AMS).
-Trade Promotion Program: this program provide private
sector assistance to open new markets.
This will be administered by the
Foreign Agriculture Service (FAS).
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USDA officials are targeting Labor Day to have specific
details on the Market Facilitation Program and sign up in
place. Visit
these sites for announcements and specific information on
the program as they become available.
Foreign Agriculture Service (FAS).
The Agricultural Marketing Service (AMS)
USDA Press Releases
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Sources:
USDA Export Data
Secretary of Agriculture Press Release
Office of the United States Trade Representative
By Bill
Williams |