Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 8/16/18

On July 24, 2018, President Trump announced that the U.S. Department of Agriculture (USDA) would provide a $12 billion program of assistance to U.S. farms to address economic loss from his use of tariffs to impact trade policy (Bernstein, 2018). As reported, the program consists of (1) approximately $7-$8 billion in cash payments to corn, cotton, dairy, hogs, sorghum, soybeans, and wheat; (2) purchase of beef, fruits, legumes, milk, nuts, pork, and rice for distribution to food banks and nutrition programs; and (3) $200 million or so in additional spending on trade promotion programs. To provide perspective, this article examines the changes in quantity of exports and market value of production that coincide with the tariff conflict. Barley, corn, cotton, oats, rice, sorghum, soybeans, and wheat are examined. Data are from the monthly World Agricultural Supply and Demand Estimates (WASDE). Losses in market value of production are concentrated in corn and, especially, soybeans.

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