USDA Announces New Assistance Programs for Farmers Hurt by Foreign Retaliatory Tariffs
The Agriculture Department on Aug. 27 announced a series of programs designed to compensate farmers for losses caused by foreign retaliation for new U.S. tariffs. Under a new Market Facilitation Program, some $4.7 billion will be distributed to farmers of certain commodities below an income threshold, with about $3.63 billion of that amount set aside for soybean farmers. Soybeans are one of the products most affected by Chinese tariffs put in place July 6 in response to U.S. Section 301 duties (see 1806200035 and 1804060019).
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Farmers and ranchers of cotton, corn, dairy (milk), pork (hogs), sorghum and wheat also will be eligible for payments to various extents. A maximum of $125,000 will be available to each producer for the 2018 crop year, and only producers with $900,000 or less in gross adjusted income are eligible, according to a final rule implementing the program and setting application procedures. The application period will last from Sept. 4, 2018, through Jan. 15, 2019, according to a separate notice announcing available funding and levels for each commodity.
USDA also announced two other programs to help farmers affected by new tariffs. The Agricultural Trade Promotion Program will provide promotional assistance to U.S. agricultural trade groups, including for activities that address foreign tariff and non-tariff barriers to agricultural products, USDA said in a final rule. A new Food Purchase and Distribution Program will provide for government purchases of a list of commodities affected by new foreign tariffs. Purchased commodities will be distributed to the National School Lunch Program and other nutrition assistance programs, USDA said.
(Federal Register 08/30/18)