National Taxpayers Union remains opposed to the U.S. Department of Agriculture’s (USDA) plan to pay off farmers hurt by our ongoing trade disputes. The USDA’s proposed bailout falls short of the long-term certainty and access to markets U.S. agribusinesses need in order to prosper.
NTU Director of Federal Affairs, Nan Swift, explained:
“Since its July 24th announcement, taxpayers have been been raising concerns and seeking information on how the USDA’s proposed farm band-aid would be administered. Unfortunately, the details released today confirm our worst fears and make clear that the USDA hopes two bad policies will make things right with farmers, who are caught in the middle of an ill-considered trade dispute. Returning to the failed policies of the past: direct payments to farmers, government purchase and redistribution of excess agriculture products, can’t begin to fill the economic gap of lost markets that could persist long after any resolution.”
This action on the part of USDA sets a poor precedent and could open the floodgates for future costly bailouts of other hurting industries, such as boat and automobile manufacturers, or blue jean creators and bakers.”
The USDA’s announcement refers to retaliatory tariffs as ‘unjustified’ and ‘unfair.’ However, the Administration should have anticipated this outcome long before the first shots were fired in this unnecessary and harmful trade war. The response, to pick winners and losers within the farm economy, ignores the fact that when trade wars erupt everyone loses.”