.@realDonaldTrump's legacy? Crime, Corruption, Debt, Deficits and Death..............
In 2019, the federal government delivered an extraordinary financial aid package to America's farmers. Farm subsidies jumped to their highest level in 14 years, most of them paid out without
In 2019, the federal government delivered an extraordinary financial aid package to America's farmers. Farm subsidies jumped to their highest level in 14 years, most of them paid out without
action by Congress.
The money flowed to farmers like Robert Henry. When I visited in early July, many of his fields near New Madrid, Mo., had been flooded for months, preventing him from working in them. The soybeans that he did manage to grow had fallen in value; China wasn't
The money flowed to farmers like Robert Henry. When I visited in early July, many of his fields near New Madrid, Mo., had been flooded for months, preventing him from working in them. The soybeans that he did manage to grow had fallen in value; China wasn't
buying them, in retaliation for the Trump administration's tariffs.
That's when the government stepped in. Some of the aid came from long-familiar programs. Government-subsidized crop insurance covered some of the losses from flooding. Other payments were unprecedented.
That's when the government stepped in. Some of the aid came from long-familiar programs. Government-subsidized crop insurance covered some of the losses from flooding. Other payments were unprecedented.
The U.S. Department of Agriculture simply sent him a check to compensate him for the low prices resulting from the trade war.
" 'Trump money' is what we call it," Henry said. "It helped a lot. And it's my understanding, they're going to do it again."
" 'Trump money' is what we call it," Henry said. "It helped a lot. And it's my understanding, they're going to do it again."
Indeed, a few weeks later, the USDA announced another $16 billion in trade-related aid to farmers. It came on top of the previous year's $12 billion package, for a grand total of $28 billion in two years. About $19 billion of that money had been paid out by the end of 2019,
and the rest will in 2020. "....it's an enormous amount of money, more than the final cost of bailing out the auto industry during the financial crisis of 2008. The auto industry bailout was fiercely debated in Congress. Yet the USDA created this new program out of thin air; 
it decided that an old law authorizing a USDA program called the Commodity Credit Corp. already gave it the authority to spend this money.
"What's unique about this is, [it] didn't go through Congress," Glauber says. Some people have raised questions about whether using the
"What's unique about this is, [it] didn't go through Congress," Glauber says. Some people have raised questions about whether using the
Commodity Credit Corp. for this new purpose is legal.
Glauber sees a risk of "moral hazard" — a situation in which someone is shielded from the consequences of poor decisions. The decision to start the trade war was costly, he says, and the Trump administration, by tapping the
Glauber sees a risk of "moral hazard" — a situation in which someone is shielded from the consequences of poor decisions. The decision to start the trade war was costly, he says, and the Trump administration, by tapping the
federal Treasury, is avoiding the political fallout from that decision. "The sector that is hurt the most, and which would normally complain, all of a sudden it's assuaged by these payments. To me, that's a problem," he says.
The payments are quite generous. According to studies by several independent economists, the USDA is paying farmers roughly twice as much as the actual harm that they suffered from the trade war. And the payments are based on production; the bigger the farm,
the bigger the payments. Thousands of farmers got more than $100,000 each. According to an NPR analysis of USDA records of payments made through July 2019, 100,000 individuals collected just over 70% of the money.
Catherine Kling, an economist at Cornell University, says the government could at least have demanded some public benefits in exchange for that money. "I think it's a real lost opportunity," she says.
What farmers do with their land has a huge impact on water quality, wildlife
What farmers do with their land has a huge impact on water quality, wildlife
and climate change, Kling says. The USDA has programs that pay farmers to help the environment, doing things like restoring wetlands.
The budget for those environmental programs is just a quarter of the size of this year's trade-related payments. So Kling's reaction to this year's farm bailout is, "Wow, [there are] so many things that money could get spent on that could really be beneficial to taxpayers,
who are ultimately footing the bill."
Events in 2019 tested that alliance, as the USDA helped farmers while restricting SNAP payments.
"They've already given out $19 billion to farmers, but they're cutting $5 billion from people in need," says Rep. Marcia Fudge, D-Ohio,
Events in 2019 tested that alliance, as the USDA helped farmers while restricting SNAP payments.
"They've already given out $19 billion to farmers, but they're cutting $5 billion from people in need," says Rep. Marcia Fudge, D-Ohio,
who sits on the House Agriculture Committee.
"I don't even know how to describe it except to say that it is cruel, it is unfair, and it is clearly designed to support the president's base, as he sees it, as opposed to those whom he sees as being undeserving."
"I don't even know how to describe it except to say that it is cruel, it is unfair, and it is clearly designed to support the president's base, as he sees it, as opposed to those whom he sees as being undeserving."
