US Department Of Agriculture Announces Subsidy Plan, Farmers Association Hopes To End Trade Disputes

The US Department of Agriculture recently announced the policy details of providing us $16 billion assistance to US farmers to compensate for their losses in trade disputes. However, representatives and Congressmen of the American Agricultural Association have said that the aid plan can not replace the export market. They urge the US government to end trade disputes as soon as possible and resume normal trade in agricultural products.

According to the policy details released by the US Department of agriculture on that day, US farmers can apply for government subsidies in July 29th. The Ministry of agriculture will calculate the subsidy available to each grower based on the planting area and corresponding compensation rate of each farm. In addition, pork and dairy producers can also apply for certain subsidies. The US Department of agriculture will issue first subsidies in late 8, and second and third subsidies may be issued in November and January next year.

This is the second time the US government has allocated huge sums of money to subsidize farmers since last year. Before the trade disputes caused by the United States, many economies adopted counter measures against US agricultural products, and US agricultural exports declined sharply, and farm operations were in a predicament.

Tzipi Duval, President of the Federation of agricultural associations, said in a statement on the same day that the current US agriculture is experiencing a difficult period and the longer the trade war lasts, the greater the impact it will have on the rural areas. He said that in the face of severe weather, low commodity prices and insufficient labour force, American agriculture suffered a tariff shock and was called "the perfect storm".

Duval pointed out that a sustained trade war is steadily increasing the economic burden of American farmers. American farmers are ultimately more interested in trade than aid, and restoring the mutually beneficial relationship between the agricultural market and global trading partners is crucial.

David Hering, President of the National Pork Producers Council, said pork producers in the United States were highly dependent on the export market. The 1 year old trade dispute has caused serious losses to pig farmers.

Debbie Stabeno, senior Democratic congressman of the US Senate Agriculture Committee, said these "short-term and unfair expenses" can not replace export markets and coherent trade strategies.