“the White House is reportedly confronting a very different reality: one in which Trump’s trade war leaves many Americans worse off, with farmers likely to be hit the hardest.”
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“Agriculture Secretary Brooke Rollins told reporters last week that the White House has asked her to “have some programs in place that would potentially mitigate any economic catastrophes that could happen to some of our farmers” as a result of a trade war.”
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“The time to work that out might be running short. Trump has promised to ramp up his trade war with Mexico and Canada in early April, and the administration also plans to start slapping so-called “reciprocal tariffs” on imports from other countries on April 2. As the various trade wars escalate, farmers are likely to be on the front lines—because American agricultural exports are an easy target for retaliatory tariffs from other countries.”
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“That’s exactly what happened during Trump’s first term, when his trade war with China caused American farmers to lose a sizable chunk of one of their largest export markets. When farmers complained about it, the Trump administration provided a $28 billion bailout via a New Deal–era program at the Department of Agriculture.
Some of that is already happening. In response to tariffs imposed by Trump in February, China slapped new tariffs on a wide range of American farm exports, including beef, chicken, corn, cotton, dairy, fruits, pork, soybeans, and various vegetables. Both Canada and Mexico have indicated that they plan to retaliate against American tariffs with new levies targeting American agricultural goods.”
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“That’s the nasty thing about trade wars. Not only do they harm manufacturers and consumers seeking to buy raw materials and finished goods from abroad, but they also harm domestic producers (like farmers) who lose access to foreign markets and therefore earn less money. Tariffs hurt Americans who want to eat avocados from Mexico, and Americans growing soybeans to sell there. There are a lot more losers than winners—and that’s before taxpayers get put on the hook for bailouts.
There should be no taxpayer-funded bailouts for American farmers who get burned by Trump’s trade wars. If the White House is concerned about the consequences that higher tariffs will have on American agriculture, there is an easy solution: Don’t impose them.”
“House Agriculture Chair G.T. Thompson (R-Pa.) said Saturday that he will oppose any spending measure that leaves out the billions in extra aid farm state Republicans were seeking for farmers still reeling from Donald Trump’s 2018 trade war, inflation, a delayed five-year farm bill reauthorization and a raft of other economic pressures. Republicans in agriculture-heavy states and some Democrats have warned about a crippling economic crisis hitting rural America, which overwhelmingly supported Trump in the last election.”
“As part of a $33 billion funding request for Ukraine, the Biden administration last week proposed sending $500 million to American farmers with a goal of boosting production of wheat, soybeans, rice and other commodities, in order to make up for some of Ukraine’s food exports that have dried up since the Russian invasion.
But some agricultural economists say they’re unsure why the administration would move to boost subsidies for crops that are already fetching high prices, our Meredith Lee reports.
“I don’t think that this sort of intervention from the government makes any sense, other than to read it in a pure political sense, that this is something they feel like they need to do,” said Joe Glauber, former chief economist at USDA during Agriculture Secretary Tom Vilsack’s previous tenure during the Obama administration.
The funding request includes food aid programs that buy U.S. commodities and send them to countries in need, including many in Africa and the Middle East that relied on Ukraine and Russia for staples like wheat and sunflower oil and are now reeling from shortages and price spikes.
By the numbers: Under the Biden administration’s proposal, $100 million would go toward providing a $10-per-acre payment to farmers who plant a soybean crop after a winter wheat crop in 2023. Another $400 million would fund a two-year increase in loan rates for U.S. producers to encourage them to grow more select food commodities, including wheat, rice and oilseeds like soybeans, sunflowers and canola.
The Agriculture Department claims the proposal would help stabilize rising U.S. food prices and provide food for foreign countries in need, by helping American farmers grow 50 percent of the wheat normally exported by Ukraine, among other things. That plan, however, would probably also require the U.S. to step up funding for federal aid programs that buy and ship U.S. commodities abroad. Otherwise, wealthier countries like China would likely buy up the extra supply on the open market.
Biden’s proposal comes despite prior statements by key White House and USDA officials that high commodity prices alone would encourage U.S. farmers to increase their crop production and help meet global demand in the wake of Russia’s invasion of Ukraine. The president on Thursday described the plan as “good for rural America, good for the American consumer and good for the world.””
“In a surprise reversal after more than a year of nonstop protests, Indian Prime Minister Narendra Modi has agreed to repeal three controversial laws affecting the country’s agricultural industry.
The laws, which sparked a massive protest movement after they were passed in September 2020, were designed to modernize India’s agriculture industry — but India’s farmers and other critics said they would advantage corporations at farmers’ expense.
Modi’s decision to back down is a key victory for farmers, whose protests have centered on the Indian capital of New Delhi, and a sign of growing dissatisfaction with the increasingly Hindu-nationalist Bharatiya Janata Party, which Modi leads.”
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“The laws promised to open the agriculture market to commercial buyers, as opposed to the current system of government markets purchasing farmers’ goods and effectively guaranteeing them a minimum income. But as Vox’s Jariel Arvin explained in December 2020, farmers feared this would subject them to the whims of the market and massive corporations, and make it harder to make a living.”
“In the late 1920s, Soviet leader Josef Stalin sent Communist Party officials and activists out into the countryside with orders to convert private, family-owned farms into collective enterprises.
Ukrainian farmers resisted, and party leaders resorted to torture, threats, and graphic public shaming. In one Ukrainian province, according to Anne Applebaum’s Red Famine (Doubleday), a gang of Communist apparatchiks marched farmers into a room one by one and demanded they submit. Those who refused were shown a revolver. If they still did not comply, they were marched into jail, with the words malicious hoarder of state grain inscribed on their backs.
Stalin’s radical economic program was rooted in the idea that virtually all food supplies, land, and farming equipment were the property of the government. Collectivization was a state-sponsored program of mass theft perpetrated under the premise that Ukraine wasn’t even a real country.
Without private property, personal profit, or local pride there were few incentives to work. The new state-run farms were far less productive than expected, leading to -shortages. At the same time, Stalin increased grain procurement requirements from Soviet localities—Ukraine in particular—so that most of what was produced was seized by the state. By the spring of 1932, Ukraine had begun to starve.”
“In March, when Congress passed its $1.9 trillion Covid-19 stimulus package, the legislation included a $4 billion loan forgiveness program targeted at Black and other minority farmers. Based on strong evidence that the U.S. Department of Agriculture had perennially discriminated against certain groups, placing them at much higher risk of foreclosure than white farmers, the program offered a one-time emergency payout to alleviate debt for what it called “socially disadvantaged” farmers.
The policy represented a worthy and long-overdue attempt to redress historic and ongoing discrimination by USDA. But now the program is under legal siege.
Over the past few months, white farmers and ranchers have filed about a dozen lawsuits against USDA, alleging that they were victims of racial discrimination because, unlike several minority groups, white people did not automatically qualify for the emergency debt relief. While the lawsuits have been filed in multiple states, a class action has been certified in a case in Texas, where five farmers sued with backing from Stephen Miller, President Donald Trump’s former adviser. To the chagrin of Black and other minority farmers long awaiting relief, several federal courts have issued temporary injunctions blocking payments while these cases are decided.
Now, the Biden administration must decide whether to soldier on in court to defend the program or seek legislative fixes to inoculate it from legal challenges.”
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“In the near term, the results of the white farmers’ lawsuits could have a significant impact on farmers of color across the country. In particular, without relief payments that USDA was supposed to begin distributing this summer, some Black-owned farms inevitably will collapse”
“Hundreds of thousands of Indian farmers and their supporters have been occupying major roads surrounding the capital, New Delhi, since November in protest of the agriculture reform laws.
Under the new policies, introduced by Modi’s Bharatiya Janata Party (BJP), Indian farmers must sell goods and make contracts with independent buyers outside of government-sanctioned marketplaces, which have long served as the primary locations for farmers to do business.
Modi and members of his party say the reforms are needed to help India modernize and improve its farming industry, which will mean greater freedom and prosperity for farmers. But the farmers, afraid they will be at the mercy of big business, remain unconvinced.
Modi’s government offered to put the laws on hold for 18 months, but the farmers have refused, demanding a full retraction of the laws to end their standoff.
After an 11th round of talks between the farmers and the government failed, the farmers unions decided to up the ante with a tractor march into the capital on India’s Republic Day, which commemorates the signing of India’s constitution. Miscommunication led to violent face-offs with police, who used tear gas and batons to try to turn them back.
Hundreds of police officers were injured. A farmer was also crushed when his tractor was among the many vehicles overturned in the violence.”