This article summarizes a bunch of issues related to the pandemic. It’s from March 25, and “a slush fund type bailout for global corporations and Wall Street” is pretty much what was in fact delivered.
Farmers were already struggling to make ends meet prior to the COVID-19 crisis. For more than six years, farmers have been managing low incomes, rising costs, increasing debt and bankruptcy, volatile export markets (exacerbated by President Trump’s tariff fights) and a series of extreme weather events tied to climate change. Now, the fast-moving, unprecedented COVID-19 situation is creating new disruptive challenges for farmers and our food system. - IATP
This is from an email I got from Sen. Tina Smith (D-MN), specifying some of what's in the package. You can decide for yourself, how much is actually likely to help traditional farmers, and how much is just more handouts to Big Ag.
$9.5 billion dedicated disaster fund to help farmers who are experiencing financial losses from the coronavirus crisis, including targeted support for specialty crop farmers, dairy and livestock farmers, and local food producers.
$14 billion to fund the Farm Bill's farm safety net through the Commodity Credit Corporation.
Eligibility for farmers and agricultural and rural businesses to receive up to $10 million in small business interruption loans from eligible lenders, including Farm Credit institutions, through the Small Business Administration. Repayment forgiveness will be provided for funds used for payroll, rent or mortgage, and utility bills.
$3 million to increase capacity at the USDA Farm Service Agency to meet increased demand from farmers affected by the coronavirus crisis.
Here's a take on the "farmers or Big Ag" query.
Today, (April 17 2020), "Sonny" Perdue joined our "War-time" President to announce a $19 billion program that combines direct payments to producers and $3 billion in commodity purchases for distribution through food banks and faith-based organizations. Sounds like the big beneficiaries will be livestock producers — $5.1 billion to beef cattle, $2.9 billion to dairy farmers, and $1.6 billion to hog producers. Another $3.9 billion will be targeted to row crop producers, $2.1 billion will go to specialty crop producers, and $500 million will go to products deemed “other crops.”
ReplyDeleteHmmm ... so the USMCA was gonna be great for dairy and now, they're getting another bailout ... and didn't you think now that China had agreed to start buying from the US (didn't you hear Donald "Trade Wars are easy to win" Trump tell us that) ... they wouldn't need MFP payments this year (that's what "Sonny" told us).
Well, it turns out that Chinese have already fully booked their soybean shipments in May this year with the large majority of the 9.5 million metric tons sourced from Brazil. Turns out that Brazil is having a bumper crop and will be looking to expand their exports to Europe.
Oh well, at least farmers could get forgivable loans from SBA's The Paycheck Protection Program ... wait a second, the SBA is out of money -- turns out that almost 2 percent of all loans are for more than $2 million, making up nearly 30 percent of all loans funded --- 'cause, Representative Kevin Hern (OK-Party of Trump) who has the nickname McCongressman for his ownership of McDonald franchises, got the legislation to include big franchise owners as participants ... as such, a company like "Ruth's Steakhouse" has received $20 million.
In fact, agricultural small business received less loan monies than mining interests even though they received roughly 3 times the number of loans (in other words, mines got SBA loans at more dollars and for a smaller number of participants.)
Yep, Trump Farm Voters Got Suckered.