Discussion: Ag Sec: Promised Farmer Bailout Will Not Make Up For Trump's Trade War Damage

katwillow · July 28, 2018, 9:43pm

And then Russia will come to our rescue, bail us out!

kwd101 · July 28, 2018, 9:46pm

I hope someone does some deep investigating to see if this money goes to small/family farms or just gets vacuumed up by the giant agribusiness and fake farms.

kwd101 · July 28, 2018, 9:47pm

Question: could California negotiate its own trade deals with Mexico? I’m guessing no, but that would be an interesting challenge to Trump’s horseshit.

jhand · July 28, 2018, 9:51pm

Someone recently pointed out that Trump’s problem-solving skills are very weak, QED.

daveminnj · July 28, 2018, 9:52pm

Cue the trap door!

tpr · July 28, 2018, 9:54pm

The money comes from the Commodity Credit Corporation, a USDA agency founded in 1933. It has authority to borrow up to $30 billion from the Treasury at any one time to “stabilize, support, and protect farm income and prices.”

https://talkingpointsmemo.com/news/farmers-reaction-trump-emergency-farmer-aid

ETA: Sorry I didn’t elaborate before, was on a phone.

The CCC can borrow money from the Treasury. So, what then? Unlike TARP, it doesn’t sound like this is a loan that will eventually be paid back. According to Wikipedia:

Net losses from its operations subsequently are restored by the Congressional appropriations process.

So, it appears that ultimately the $12b comes from taxpayers, unsurprisingly. Trump is very transparently attempting to buy farmers’ votes using tax money in a cynical attempt to avoid impeachment.

inversion · July 28, 2018, 9:55pm

“Obviously this is not going to make farmers whole,” Perdue said, adding that the Trump administration is only promising to help the nation’s farmers this year and is not guaranteeing future support. “It’s for the 2018 crop. We do not expect to do this over a period of time.”

k

26degreesrising · July 28, 2018, 9:55pm

My favorite thing about all this is the way Big Agra is being called “farmers,” as if the money’s going to populist type hayseeds in checkered shirts and overalls. Just folks, right. Not factory farms.

Right.

losamigos · July 28, 2018, 9:59pm

Probably in anticipation of tariffs, and lower costs, China cancelled US soybean orders and bought from Brazil.
US price dropped about 20% since May.
Brazil soy premium increased about 20% since May.
Go figure.

EU now has less soy to buy from Brazil at a higher price.
EU and Trump announce ‘possibility’ of increased US soy purchases (at reduced prices).
Trump declares victory.

Nothing like digging a hole, starting a fire in it, pissing on it and throwing $12B of taxpayer money into the hole, then declaring you fixed the problem. MAGA.

ottnott · July 28, 2018, 10:00pm

And then rented back to veterans at a monthly cost to the VA that adds up to the cost of a new chair in just five months.

pshah · July 28, 2018, 10:01pm

Tariffs on aluminum doesn’t help America, but it helps this guy.

Always an angle.

pshah · July 28, 2018, 10:04pm

Additionally, under the proposed plan, the U.S. government will buy fruits, nuts, rice, legumes, beef, pork and milk directly from farms to stock food banks and nutrition programs.

Republicans have made peace with tariffs and welfare for farmers, but helping poor people is still, no doubt, anathema. Whew! For a moment I thought Republicans had no fixed “values”.

eb5 · July 28, 2018, 10:05pm

$200 million to lobbyists. Who didn’t see that grift coming?

sooner · July 28, 2018, 10:06pm

ottnott · July 28, 2018, 10:08pm

“Obviously this is not going to make farmers whole,” Perdue said

That just tugs at my heartstrings something fierce. Let me open my wallet a little wider so you can take out some more to prevent the Trumpp voters from bearing any cost from his action.

You’ll find my wallet is already pretty loose, since I’m a victim of the GOP tax terrorism against California. If there isn’t enough in there, just borrow what you need and we can shift even more of the future Federal budget over to interest payments.

grack · July 28, 2018, 10:08pm

populist type hayseeds in checkered shirts and overalls

Reality is that big agribusiness does employ a lot of the people you just described. They likely vote with the industry. It’s their livelihood.

lastroth · July 28, 2018, 10:11pm

Part of that other stuff is the 24 Super Hornets Boeing is building for the Navy.

jkrogman · July 28, 2018, 10:11pm

What? A trumpski telling the truth?

Take him to the wouldshed!

dannydorko · July 28, 2018, 10:14pm

I know it as bri-berry.

dbutch · July 28, 2018, 10:15pm

Nope Article I section 10 of the United States Constitution rules that out:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it’s inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.