LUBBOCK, Texas (RFD NEWS) — Questions are growing about how tariff revenue is used and whether farmers benefit, as trade policy again reshapes agricultural markets and federal spending priorities.
Dr. Bart Fischer of the Agricultural and Food Policy Center at Texas A&M University notes tariff revenue flows through longstanding statutory channels rooted in the Agricultural Adjustment Act of 1935. Section 32 requires 30 percent of customs duties to be directed toward agricultural priorities, including export promotion, domestic consumption support, and the restoration of farmers’ purchasing power.
Tariff collections have climbed sharply. Customs duties rose from $34.6 billion in 2017 to $70.8 billion in 2019, and the Congressional Budget Office projects duties could jump from $77 billion in 2024 to about $418 billion by 2026 under expanded tariff use.
In practice, most Section 32 funds support nutrition programs rather than direct farm payments. USDA retains limited authority for commodity purchases and assistance, while appropriations rules cap farmer-directed support at roughly $350 million in carryover funds annually — a small share if 2026 projections hold.
The structure leaves policymakers relying on tools like Commodity Credit Corporation programs for farm relief despite rising tariff revenues.
Farm-Level Takeaway: Tariff revenues rarely flow directly back to farmers.
Tony St. James, RFD NEWS Markets Specialist
In part six of his blog series,"Top 10 Developments in Ag Law and Tax in 2023,” farm legal expert Roger McEowen tackles issue #2, foreign ownership of ag land.
February 02, 2024 08:00 AM
·
In part five of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number three, California’s Prop 12 pork regulations.
February 01, 2024 04:06 PM
·
In part four of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number four, the Employment Retention Credit.
January 31, 2024 09:00 AM
·
In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
January 30, 2024 02:29 PM
·
Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
January 18, 2024 12:44 PM
·
The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
January 04, 2024 12:20 PM
·
