Is The Trade Aid Package Big Enough To Really Help?

September 5, 2018 12:37 PM
 
 

When USDA released their $12 billion trade aid package in August, there was a collective sigh of relief in farm country. However, as details have become clearer, farmers and bankers across the country are concerned the aid won’t be enough to make a measurable difference for all farmers. 

“There are a lot of restrictions,” says Steve Nicholson of Rabo Agrifinance, adding that they were encouraged when the package was released and showed soybean farmers would receive $1.65 per bu. of soybeans, until they started seeing the program qualifications. 

“No one can get more than $125,000 [for grain production]. Taxable income [in 2014, 2015 and 2016] has to be below $900,000 to qualify. So, there's gonna be a lot of people who, unfortunately, are not going to get any relief because they don't fall in those particular categories,” he explains. “So, it looks good on the surface but you start digging down it like makes you concerned.”

According to Nicholson, when you do some calculations on how many bushels of soybeans the program will cover you realize USDA does not intend for everyone to get a payment. 

“If I take $1.65 and look at, you know, $3.6 million dollars, that only covers about 2 billion bushels of beans,” he explains. “We're already producing over 4 billion bushels.”

 

Will you qualify for a payment? If not, I’d love to talk to you. Please send an email to alaca@farmjournal.com

 

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Comments

 
Spell Check

Wisconsin Corn Grower
Kewaunee, WI
9/5/2018 07:22 PM
 

  All it amounts too is a band aid for a wound that requires major surgery. Maybe those that voted for Trump could refrain from taking this government welfare seeing that they got what they voted for in his trade agenda. This in turn would allow them to raise the payment rate to those that didn't vote for this madness.

 
 
S
Central , IL
9/5/2018 07:02 PM
 

  Here's what a famous and oft quoted trade specialist said about all trade. google it 672 viewsJul 18, 2018, 12:03am Adam Smith Doesn't Like U.S. Trade Policy

 
 
Rick
Jonesboro, AR
9/5/2018 05:31 PM
 

  I'd say a $900,000 TAXABLE INCOME restriction is pretty reasonable. That's over a million in AGI!

 
 
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