Area
United States of America
Commodity Group
Oilseeds, oils and meals
Commodity
Crops, livestock products
Date
01/12/2018
Policy Category
Production
Policy Instrument
Agricultural policy
Description
Paid out to farmers nearly USD 840 million, as part of a first tranche of payments worth USD 6 billion intended to compensate farmers for losses incurred due to Chinas imposition of tariffs on US agricultural exports. A second round of payments was authorized in mid-December.
Notes
As of mid-November, USDA paid out nearly USD 840 million to farmers, as part of a first tranche of payments worth USD 6 billion intended to compensate farmers for losses incurred due to Chinas imposition of tariffs on U.S. agricultural exports (see also MPPU Aug.&Oct.18). Reportedly, soybeans, wheat, maize, dairy and hog producers benefitted the most from the subsidies. In mid-December, the U.S. Government has authorized a second round of payments from the USD 12 billion aid package designed to compensate farmers for losses incurred due to the Sino-US trade tensions (see MPPU Aug./Oct./Dec.18). Including the additional disbursements, USDA expects direct payments to farmers to total USD 9.6 billion, of which around USD 7.3 billion will be for soybeans growers, who are entitled to receive USD 1.65 per bushel (USD 60.62 per tonne) on half of their actual 2018 production. In addition, USD 1.2 billion have been earmarked for food purchases and around USD 0.2 billion for measures to develop foreign markets.
