Trump Funnels Record Subsidies to Farmers Before Election Day

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Buying votes with our tax dollars…

WASHINGTON — For the American farmers President Donald Trump counts on for support, the government money is flowing faster than ever.

Federal payments to farmers are projected to hit a record $46 billion this year as the White House funnels money to Trump’s rural base in the South and Midwest before Election Day.

The gush of funds has accelerated in recent weeks as the president looks to help his core supporters who have been hit hard by the double whammy of his combative trade practices and the coronavirus pandemic. According to the American Farm Bureau, debt in the farm sector is projected to increase by 4% to a record $434 billion this year and farm bankruptcies have continued to rise across the country.

But few have gotten more help than the agriculture sector, which this year is expected to receive the largest government contribution to farm income since its previous record in 2005, according to the University of Missouri’s Food and Agricultural Policy Research Institute. The breadth of the payments means that government support will account for about 40% of total farm income this year. If not for those subsidies, U.S. farm income would be poised to decline in 2020.

“There are both economic and political motivations for these payments,” said Patrick Westhoff, who directs University of Missouri’s agriculture research center.

Last week, the Office of Special Counsel determined that Trump’s Agriculture secretary, Sonny Perdue, had improperly used his position to push the president’s reelection by promising more help for farmers. At an August event in North Carolina, Perdue violated ethics laws when he promoted Trump’s reelection during remarks about the Farmers to Families Food Box Program, saying: “That’s what’s going to continue to happen — four more years — if America gets out and votes for this man, Donald J. Trump.”

Farmers have been clobbered financially during the past two years, as Trump’s trade wars with China and Europe led to tariffs on U.S. agricultural exports, including corn, soybeans, lobsters and peanuts. Then, this year, the pandemic interfered with global supply chains, and restaurant and hotel closures sapped demand. Farmers were forced to dump milk into manure pits and destroy millions of pounds of beans and cabbage.

“Nearly every major sector of the farm economy will have lower cash receipts this year compared to last year, and total cash receipts will be the lowest since 2010,” John Newton, the American Farm Bureau’s chief economist, wrote in a report on the state of the industry last month.

The desire to help struggling farmers is bipartisan, but Democrats and critics of the aid programs have argued that the money has been paid out unevenly by the Trump administration and with the intent of currying favor with a politically important constituency in swing states.

more… https://www.yahoo.com/news/trump-funnels-record-subsidies-farmers-120926107.html
 
Farmers have been clobbered financially during the past two years, as Trump’s trade wars with China and Europe led to tariffs on U.S. agricultural export
There have been some very good years for crops and an oversupply of livestock. Farming is cyclical, and overproduction is severe at present. This is not about tariffs on China.

Farm subsidies have been with us since WWI.
“There are both economic and political motivations for these payments,”
Of course there are. Nothing politicians ever do are not motivated by political motivations.
 
There have been some very good years for crops and an oversupply of livestock. Farming is cyclical, and overproduction is severe at present. This is not about tariffs on China.

Farm subsidies have been with us since WWI.
But farmers consider themselves ‘rugged individualists’ who eschew government intervention – except for crop welfare and CRP land payments.
 
Farmers were forced to dump milk into manure pits and destroy millions of pounds of beans and cabbage.
Beef prices are not horrible, but they’re not good and will almost certainly get worse. Beef is not subsidized. Never has been to my knowledge. There is presently a bad drought brewing in the southwest, which extends all the way into Missouri. The No. 1,2 and 3 cattle producing states, Tx, Ok and Mo, are right in it. Read an article in a Cattlemens’ magazine today. There is a combination of restaurant lockdowns killing the market for the best beef and herd liquidation due to drought.

If it keeps up, the downturn will be much worse because ranchers in the southwest won’t be able to hold onto anything other than their absolute best breeding stock and some won’t even be able to do that. After that liquidation, prices will rise, but probably not until next spring, if then. When the liquidation is over, and if it’s a really big liquidation, meat prices will soar until herds are rebuilt. That takes no less than three years.

That affects all meat. You can’t just look at one sector and think other sectors are safe. Like all farm products, meat prices and profitability are cyclical.
 
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Beef prices are not horrible, but they’re not good and will almost certainly get worse. Beef is not subsidized. Never has been to my knowledge.
No, its not subsidized, but consumers pay for the tariff.

“As a result of the 1995 World Trade Organization (WTO) Uruguay Round Agreement, the United States adopted a system of tariff rate quotas (TRQs) for imports of beef.”


That mean ol’ NAFTA means there is no tariff on beef imports from Canada or Mexico.
 
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