The continuing US federal government shutdown could have substantial negative consequences for American farmers, many of whom are already feeling the squeeze from the ongoing trade conflict between the US and China.
President Donald Trump’s sudden reversal on a bipartisan funding extension before Christmas forced a sizeable portion — but not all — of the government to shut down last Saturday. Nine days later, no solution has been found.
According to University of Illinois agricultural economist Scott Irwin, that could be bad news for farmers hoping to receive subsidies from the federal government, which were first introduced with the aim of reducing the negative impacts of the tariffs placed on agricultural goods being sent from the US to China.
Irwin told Reuters this week that the partial shutdown of the government may lead to delays in aid payments to American farmers.
“If you’re talking about cash in the farmer’s pocket, the longer this goes on, the longer it’s going to delay that program, which is really just getting ramped up,” Irwin told Reuters.
In August, the administration launched a $4.7 billion initial investment plan aimed at helping those farming corn, cotton, dairy, hog, sorghum, soybean, and wheat. It could expand to as much as $12 billion.
The trade war has already had a clear negative impact on many American farmers who rely heavily on exports to China to make money.
In November it was reported that farmers in some US states are being forced into plowing their crops under— effectively burying them in their fields — because there is not enough room in storage facilities, and they can’t sell their products thanks to Chinese tariffs.
In August, the administration launched a $4.7 billion initial investment plan aimed at helping those farming corn, cotton, dairy, hog, sorghum, soybean, and wheat. It could expand to as much as $12 billion.
The trade war has already had a clear negative impact on many American farmers who rely heavily on exports to China to make money.
In November it was reported that farmers in some US states are being forced into plowing their crops under— effectively burying them in their fields — because there is not enough room in storage facilities, and they can’t sell their products thanks to Chinese tariffs.
Reuters reported on Friday evening that the US Department of Agriculture has said it is unlikely to publish its World Agricultural Supply and Demand Estimates (WASDE) report and reports by its National Agricultural Statistics Service if the shutdown continues.
The data is supposed to be released on January 11, and would likely make clear whether China is once again purchasing US crops.
Source: Business Insider