Reuters reports that Ag Secretary Brooke Rollins indicated today that the Trump administration plans to announce a “bridge payment” for farmers that is intended to provide relief in the short-term as the administration continues to finalize aid packages and longer-term deals with international trading partners. Rollins is reported to have said to President Trump in a cabinet meeting today: “We do have a bridge payment. We’ll be announcing with you next week.”
This announcement comes amidst mounting pressure from farm groups and Republican lawmakers, who have been insisting for some time now that many farmers are near the breaking point as low crop prices, overtaxed storage facilities, and trade disruptions have put the squeeze on ag markets. Of particular concern has been the billions of dollars in lost soybean sales to China as a consequence of the tumultuous trade back-and-forth in recent months.
Though exact amounts and schedules for this and other promised aid packages are yet to be specified, it is estimated that the U.S. government will have spent more than $40 billion on payments to farmers by the end of this calendar year, which would be the second-highest annual amount since 1933, according to U.S. Department of Agriculture data.
This is a developing story – tune in to “Market Day Report” on Wednesday morning for all the latest updates.