Posted on 04/11/2018 6:56:35 AM PDT by SpeedyInTexas
The Trump administration is seeking to blunt domestic opposition to its trade policies with a relief package for farmers affected by the U.S. trade spat with China, say officials involved in the discussions.
The aid package, which could climb into the billions of dollars, is still being developed. Agriculture and congressional officials are examining Depression-era programs like the Commodity Credit Corp., which was created in 1933 to stabilize farm incomes, and which permits borrowing of as much as $30 billion from the Treasury to finance its activities. Using the CCC would also give the administration an existing program to tap, rather than having to devise something new that would need to clear Congress.
(Excerpt) Read more at wsj.com ...
Tariffs on Chinese products would likely exceed any support provided to farmers, so no net loss for the treasury.
Making up for tax increases with welfare.
Most people have no idea how tough it is to farm today with costly equipment, fertilizer and pesticides. A bag of seed corn use to cost $40.00. Today it’s $400.
Agreed. Now take the SNAP program out of the Farm Bill so they can stop using the farmers as a front for their giveaway program.
Most likely, farmers will sell their products to other countries instead of China. When China buys soybeans from Brazil instead of the US, countries that would have bought soybeans from Brazil, will now need to buy from the US.
Farmers will be fine and probably not need price support from the programs the article mentioned. But the programs can stiffen the resolve of farm state Senators.
Regarding “tax increases”: Consumers can avoid tariffs buy not buying the products that have tariffs. It is a “voluntary tax”. Hey, companies can build their products in the USA and avoid tariffs completely!
Yet another epic Trump mistake, just like attacking the right to keep and bear arms, just like signing his name to half a billion for Planned Butcherhood.
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