US government to pay US$4.7 billion directly to farmers in tariff aid
US$3.6 billion would be made to soybean farmers; China has been largely out of the soybean market since implementing tariffs
The US Department of Agriculture said on Monday its US$12 billion farm aid package would include US$4.7 billion in direct payments to farmers to help offset losses from retaliatory tariffs on American exports this season.
The bulk of the payments, US$3.6 billion, would be made to soybean farmers.
That amounts to US$1.65 per bushel multiplied by 50 per cent of production, Under Secretary for Farm Production and Conservation Bill Northey said on a conference call.
China has traditionally bought about 60 per cent of US soybean exports but has been largely out of the market since implementing tariffs on US imports in retaliation for the Trump administration’s tariffs on Chinese goods.
The aid package, originally announced in July, also includes payments for sorghum of 86 US cents per bushel multiplied by 50 per cent of production, 1 US cent per bushel of corn, 14 US cents per bushel of wheat, and 6 US cents per pound of cotton.