China won’t buy! Trump expected to announce farmer aid plan

US President Trump is expected to announce an aid package for American farmers soon, potentially totaling $15 billion. The plan is intended to alleviate the economic hardship farmers face following the US-China trade dispute and a record corn harvest. The aid will help farmers impacted by the trade war, particularly soybean growers, as China, the largest importer of US soybeans, has seen a significant drop in purchases this year. Sources familiar with the matter have reported that the aid could total between $10 billion and $15 billion and serve as a “bridge” to farmers through the harvest season, with more aid likely to follow. While farmers generally support Trump, they have also strongly urged the government to provide assistance on the trade deal, particularly given the impact of retaliatory tariffs between the US and China on the US soybean market. The Trump administration has previously stated that it would use tariff revenue to pay for the farmer aid, but the current challenge is that direct payments to farmers are capped at $350 million by law, which is clearly insufficient to address the current economic challenges. Furthermore, due to the government shutdown, these payments can only be adjusted by Congress, complicating implementation. US Treasury Secretary Benson said last week that the White House plans to announce the farmer aid plan on October 6th. However, the Treasury’s Commodity Credit Corporation has not been replenished due to the government shutdown, making it difficult for the government to use the agency to finance the aid program.