Trump announce $19B relief program for farmers
President Trump and U.S. Agriculture Secretary Sonny Perdue announced a $19 billion relief package to hopefully alleviate some of the pressure the agriculture industry has been feeling amid coronavirus.
President Trump and U.S. Agriculture Secretary Sonny Perdue say the farmers’ relief program will include direct payments to farmers and mass purchases of dairy, meat and agricultural produce that will be delivered to people in need.
American farmers who have been negatively impacted by the global coronavirus crisis have a multi-billion dollar relief package heading their way.
According to Perdue, the government will purchase $3 billion in dairy, meat products and produce and will issue $16-billion worth of direct payments to ranchers and farmers with the goal to boost their income.
While announcing the package, President Trump said that will help American farmers and ranchers, and it’s money well deserved," President Trump said while announcing the package.
The pandemic only increased the woes farmers were already facing in 2020 as the result of trade disputes with China. U.S. farmers are projected to lose $20 billion in net income this year according to a report published this month by the Food and Agricultural Policy Research Institute at the University of Missouri.
The U.S. exported $6 billion of dairy in 2019, the highest in five years, according to the U.S. Dairy Export Council. Anywhere from 12 percent to 70 percent of the U.S. milk crop is exported, whether it’s in cheese, dried milk or whey form.
The pandemic has made the situation more difficult with dairy prices falling due to school closings eliminating sales to school cafeterias as well as restaurants. Some analysts estimate milk prices could drop by as much as 25 percent this year as a result of all these developments.