Trump trade aid payments benefited large, Southern
farms: watchdog report
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[September 15, 2020] By
Christopher Walljasper
CHICAGO (Reuters) - Farmers from the U.S. Southeast, primarily those
growing crops like cotton or sorghum, received larger trade aid payments
from the federal government in 2019 than those in other parts of the
country, a government watchdog agency said on Monday.
President Donald Trump's administration rolled out various subsidy
schemes to compensate farmers for lost sales during a tariff war with
China, and the programs were frequently criticized for favoring some
farmers over others.
While many farmers back Trump, dissatisfaction from farmers in swing
states like Wisconsin or Michigan could play a role in November's
presidential election.
The non-partisan Government Accountability Office found farmers in
Georgia received the most money per acre, with an average of $119.00 per
acre, versus an average of $54 per acre across the country.
U.S. Senator Debbie Stabenow of Michigan, who requested the nonpartisan
GAO's report, noted that Georgia is also the home of Secretary of
Agriculture Sonny Perdue.
"He certainly put together a program that favored the crops in his
state," said Stabenow, a Democrat. "Per farm, per acre, the South hit
the jackpot, with Georgia leading the nation."
The USDA, in response to a Reuters request for comment on the GAO
report, said Stabenow and Senate Democrats "continue to twist the data
to support a false narrative," according to an agency spokesperson.
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Democratic U.S. Senator Debbie Stabenow addresses the Detroit
Economic Club in Detroit, Michigan, U.S., October 15, 2018.
REUTERS/Rebecca Cook
The department did not explain why the GAO's 2019 data presented a false
narrative, but pointed to an average of trade aid to farm states from both 2018
and 2019.
Cotton farmers received payments equaling 40% of their projected value, while
most other crops received 25% or less in 2019, according to the GAO report.
USDA said cotton and sorghum received higher payments because of higher trade
damages "per unit of production" compared with commodities such as soybeans,
hogs and corn.
Large farms also benefited from the program, with the top 25 farms receiving an
average of nearly $1.5 million per farm. More than 70% of these large farming
operations are at least partially in the South, according to the GAO report.
While no additional rounds of trade aid payments are planned after the United
States and China signed a Phase 1 trade agreement in January, some industry
experts expressed concern about potential inequities in coronavirus aid for
farmers.
"This program (the trade aid) sets a bad precedent for future farm policy," said
Gary Wertish, president of the Michigan Farmers Union.
(Reporting by Christopher Walljasper; Additional reporting by P.J. Huffstutter;
Editing by Caroline Stauffer and Dan Grebler)
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