Trump Tees Up $10 Billion in Handouts to American Farmers Stung by Rising Costs Associated With New Tariffs

The move comes ahead of a new wave of tariffs expected to go into effect April 2.

AP/Abbie Parr
A farmer transfers corn from his combine to a delivery truck in Minnesota. AP/Abbie Parr

The Trump administration is speeding a program to dole out $10 billion in taxpayers’ money to farmers impacted by the ever-increasing number and scope of new tariffs imposed since the president took office eight weeks ago.

The Agriculture Department began accepting applications from farmers on Wednesday for the Emergency Commodity Assistance Program. The payments were authorized by the American Relief Act passed by Congress last year.

Farmers will be given a flat rate based on the number of acres they farm. Commodities eligible to receive so-called “economic assistance” under the program include wheat, corn, sorghum, barley, oats, cotton, rice, peanuts, soybeans, peas, and lentils.

The USDA says payments will be issued as applications are approved but the initial payments will be limited to ensure they don’t exceed available funding. If there is enough money remaining after the initial round of payouts, they may issue a second payment. Once applications are approved, the money will be deposited directly into the farmers’ bank accounts in about three business days.

“Producers are facing higher costs and market uncertainty, and the Trump Administration is ensuring they get the support they need without delay,” Agriculture Secretary Brooke Rollins says.

The move comes ahead of a new wave of tariffs expected to go into effect April 2 on a growing list of countries. President Trump says the new reciprocal tariffs he is contemplating will offset what he says are unfair trade barriers against America.

“April 2 is a liberating day for our country,” Mr. Trump told reporters over the weekend. “We’re getting back to some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.”

Since Mr. Trump began imposing tariffs, farmers have seen the cost of inputs such as fertilizer and fuel increase — a trend that is likely to intensify as the tariffs are increased. On a brighter note, the sale price of many commodities has increased in recent weeks, with prices for corn and soybeans rebounding and the prices for wheat declining slightly.

The Farm Bureau notes that farmers not only pay more for inputs, they often feel the most impact from retaliatory tariffs imposed by countries on the receiving end of Mr. Trump’s tariffs.

The three countries Mr. Trump has targeted for tariffs in his first round of actions are the top three markets for agriculture exports — Communist China, Mexico, and Canada. In response, China has announced punitive tariffs of 10 percent and 15 percent on products ranging from fish to chicken, soybeans to wheat, and fruit to corn, among others. Canada has also announced retaliatory tariffs of 25 percent on around $21 billion of American agricultural products.

An agricultural economist at Cornell University, Christopher Wolf, says American farmers should be concerned about the widening trade wars. “If I was them, I would be concerned about being collateral damage,” Mr. Wolf told Foreign Policy Magazine.

The tariff battle during Mr. Trump’s first administration cost American farmers some $27 billion in export losses in 2018 and 2019, according to government figures.

During an interview promoting National Ag Day on Tuesday, Ms. Rollins said one of her top priorities is to “expand market access around the world.”

She said she is working with her counterparts in Canada and Mexico to renegotiate trade agreements and noted that America has a $49 billion agriculture trade deficit. “Our farmers are really, really struggling,” Ms. Rollins said.


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