Farm Aid Plan- Economist Say Trump’s Plan Is Very Equitable

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16 Billion Dollar Disbursement Plan For U.S. Farmers Suffering From Trade Wars Is Fair

The Trump Administration is planning on helping U.S farmers suffering as a result of trade wars with China. The way the money will be disbursed has been more full explained this week. Sonny Purdue, the Secretary of the U.S. Department of Agriculture (USDA) outlined the plan earlier this week. The plan is to give farmers a per diem for each acre they have planted.

A well regarded economist with the University of Illinois says this system is very fair. Scott Irwin who is considered an Agriculture expert and economist said Trump’s plan is much fairer than aid in the past. The Trump Administration gave struggling farmers 11 billion dollars of aid last year.

According to Irwin that aid was disbursed according to how many bushels farmers had. Irwin thought that type of plan was tipped in favor of soybean farmers. Irwin feels this plan will be ‘a much more fair and even plan. He believes this plan with ’15 plus dollars per acre, will allow more farmers to get on their feet.’

The Current Plan Will Pay Farmers Between $15 to $150 Dollars Per Acre

The farm aid plan rolled out by Trump to help struggling farmers will pay 15 to 150 dollars per acre. The specific amount will vary from county to county and state to state. The amounts will also be calculated by how much each county has directly been affected by the tariffs. These fees imposed by China, Turkey and the European Union were the result of a ‘tit for tat’ with President Trump.

Irwin also likes the fact that this plan will enable several different types of crops to receive aid. Two dozen different crops will be included in this latest aid plan. Those crops include soybeans, corn, wheat, cotton, canola and peanuts. Hog and dairy farmers are also going to be receiving aid. Irwin says with the current African Swine Flu situation, that aid is very much needed. Although there were predictions that China would start buying pork for US farmers, it hasn’t materialized.

Farm Aid In 2018 Was Given Mostly To Soybean Farmers

Over 80% of last years 11 billion dollar aid was given to soybean farmers. There were several instances of fraud pointed out in last year’s aid package. Some experts say it ‘wasn’t exactly fraud but very close to it, hovering into the gray area of law.’

Some farmers were able to figure out how to circumvent the cap restrictions they faced with the aid. In one instance one farm received over 2 million in aid, and others got several hundred thousands of dollars. It was completely unfair and ‘full of graft’ some farmers said who were kept from getting aid.

Even with the 16 billion dollars in aid this year, some farmers say it just won’t cover everyone’s loses. North Dakota farmer Joe Ericson, said there are ongoing disputes concerning last years aid. Furthermore, he said it will ‘still be better than last year, but still not enough’.