Farmers who have been financially affected by the trade war have already been given some financial relief from the government in the form of emergency funds. Now a new announcement from the President has revealed that almost $5 billion will be made available for a second and final aid package.

President Trump’s hardline approach to Chinese trade has led to a prolonged and in some cases financially damaging war of tariffs. The United States has levied heavy tariffs on Chinese market segments, while retaliations have included tariffs on everything from American autos to pork and soybeans.

Due to the existence of a huge trade deficit, Trump has the upper hand when it comes to tariffs and the pressure they can create. However, American producers have not been immune to Chinese tariffs.

President Trump Calls Trade Retaliations ‘Unjustified’

The President announced the funding through Twitter on Monday, saying that “Today I am making good on my promise to defend our Farmers & Ranchers from unjustified trade retaliation by foreign nations. I have authorized Secretary Perdue to implement the 2^nd round of Market Facilitation Payments. Our economy is stronger than ever – we stand with our Farmers!”

Around $4.9 billion will be made available as direct payments to affected farmers. Eligible farmers include soybean, corn, wheat, cotton, cherry, sorghum, almond, pork, and dairy producers. The money combines with a previous payment to make up a total of almost $10 billion.

Not all in the agriculture industry are happy. The National Corn Growers Association (NCGA) said in a statement that relief payments are too small. Corn growers have been particularly hurt by tariffs and receive only one cent per bushel from the aid fund. NCGA President Lynn Chrisp said this week that “One cent per bushel is woefully inadequate to even begin to cover the losses being felt by corn farmers. USDA did not take into account the reality that many of our farmers are facing.”

No Trade Relief for 2019

This is the second and final planned payment for farmers affected by the trade war. While the USDA has not allocated funding for more relief, it is possible that lawmakers could propose a bill to support farmers who continue to lose income.

For now, trade tensions appear to be deescalating, and China recently purchased American soybeans for the first time since April. If White House trade negotiators can continue to make progress with China, it is possible that relations could be normalized. This will remove the pressure from farmers and eliminate the need for costly subsidies and payouts.