Prior to this distribution of aid, the Trump administration had paid around $11 billion to farmers and ranchers for their 2019 losses, as well as $8.6 billion for 2018. USDA approved the funds after the January thaw in trade tension with China.

In related news, payments from federal crop insurance total more than $6.4 billion for the 2019 growing season. That amount makes this the costliest year on record, resulting primarily from losses covered from the spring and summer floods across North and South Dakota, Minnesota, and Illinois, according to data from the USDA.

Steve Bowen, a meteorologist and head of catastrophe insight for an insurer, said that in terms of overall economic costs—including damage to agriculture, infrastructure and other property—the 1993 floods along the Mississippi and Missouri rivers remain the costliest in modern history at $38 billion in today’s dollars. Last year’s disaster cost about $20 billion.

Source: Politico

“It’s imminent,” he said of the payment, “although you can define that how you want to in Washington, D.C.”

Perdue said this third tranche of a $16 billion aid package announced will be the last farmers should expect, because success on the trade front should restore farmer incomes in 2020.

Perdue spoke at the annual American Farm Bureau Federation convention last week in Austin.

“We know 2019’s been a pretty tough year,” he told producers. “Farm disasters, unfair trade retaliation, low prices—affected every farm in America. But you kept on keeping on and you persevered.

“In agriculture, we like to grow things and we would rather have trade than aid,” he continued, citing a series of recent administration breakthroughs on trade. “So, let’s sell stuff,” he said. “Our farmers are going to demonstrate to the world that we can grow a safe, healthy product the Chinese will love.”

Sources: Farm Progress, Reuters

It had been unclear if the department planned to offer another tranche of payments, with U.S. and Chinese officials working to finalize a partial trade agreement. USDA has already paid farmers $6.7 billion for their 2019 production, on top of $8.6 million that was provided for 2018.

Perdue said further aid might not be needed in 2020 if the limited U.S.-China agreement is signed.

Source: Politico