Trade War Aid For Soybean Growers?
In the weekly email newsletter I get from the Minnesota Soybean Growers there was a story on the aid package for soybean growers. Secretary of Agriculture Prude has the authority under the CCC title of the current Farm Bill to make the payments. That means the House and Senate does not have to pass a bill for the payments to be made to soybean farmers hurt by the trade war with China.
The USDA is said to be close to making an announcement on the details and implementation. Agri-Pluse reported the payment rate proposed would be $1.65 a bushel for soybeans and 1 cent a bushel for corn. That would be on your actual bushels of soybeans and corn produced this year. However, the proposed payments are being reviewed by the White House Office of Management and Budget so they could change.
Apparently there will be $12 billion dollars available. The USDA has projected 4.6 billion bushels of beans will be produced in the U.S. this year. When you do the math soybean growers would get about $7.6 billion dollars. Corn growers at a penny a bushel does not amount to much. Would the rest of the $12 billion then go to pork producers? I have not heard of any talk about how that part of the program will work. While soybean growers have been affected by the trade war it seems pork producers have taken the brunt of the trade war.