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An aid package worth $16bn (€14.3bn) has been announced for farmers in the United States of America affected by escalating trade disputes.
President Donald Trump directed US secretary of agriculture Sonny Perdue to design a relief strategy to support farmers “from unjustified retaliation and trade disruption” while deals to open more markets are negotiated.
Secretary Perdue said: “China hasn’t played by the rules for a long time and President Trump is standing up to them, sending the clear message that the United States will no longer tolerate their unfair trade practices.
“President Trump has great affection for America’s farmers and ranchers, and he knows they are bearing the brunt of these trade disputes. In fact, I’ve never known of a president that has been more concerned or interested in farmer wellbeing and long-term profitability than President Trump.”
Aid package
The bulk of the package, $14.5bn, will be provided through direct payments to farmers.
Dairy producers will receive aid based on their milk producer history, while pig farmers will receive a payment based on the number of pigs on the farm.
Farmers producing crops including alfalfa hay, barley, corn, dry peas, dried beans, oats, rapeseed, soya beans, sunflower seed, and wheat will receive a payment based on total plantings multiplied by a county rate.
To prevent distortion to planting decisions, the per-acre payment will not depend on the crops planted and cannot exceed the total planted in 2019.
Purchase fund
A food purchase and distribution programme with a fund of $1.4bn will be used to purchase surplus products such as beef, lamb, poultry and milk. This products will then be distributed to food banks and schools.
The remaining $100m will be used to assist in developing new export markets for farmers.
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