US Shutdown To Add To The Farmers Woes

US Shutdown To Add To The Farmers Woes


US Shutdown To Add To The Farmers WoesThe US government’s partial shutdown could lead to several problems for the nation’s soybean farmers as they will not receive relief payments which were promised by government for trade aid. The shutdown began this week due to the congress’s decision to not approve President Trump’s idea of building a wall along nation’s southern border to block out refugees from entering US across Mexico. The stalemate due to which no work is being done in several government organizations has impacted several federal workers. The scheme to help farmers referred to as market facilitation program has a layout of $12 billion which was announced in July after the China-US trade war began.

This aid package was created to help farmers which were directly affected due to the retaliatory trade tariff battle between US, China and others. These payments were to be given as a form of compensation to famers that grew corn, cotton, almonds, hogs, sorghum, wheat and soybeans. Cultivators of soybeans are likely to get a grandest slice of the pie which is around $9.6 billion in total of which the share of soybeans growers is around $7.2 billion. While China is the biggest importer of soy in the world, US is regarded as the biggest supplier but due to this tariff war China did not import any soy from US.

The government administration department of US stated that after the shutdown varied programs will be slowly discontinued and shutdown but after a week once the funding resume all direct payments, farm loans and also facilitation payments would resume. The partial shutdown of government has also impacted research functions of various departments and their rural development programs. Due to this shutdown several scheduled departmental reports like monthly Agricultural Supply of the world and Demand estimates would be delayed by a few months.

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