American dairy farmers, who have seen an unprecedented amount of bankruptcy in some parts of the country, are closely monitoring the momentum they can get from the Trump administration assistance package.
According to Beta Ford, director general of dairy cooperative Land O'Lakes Inc., reciprocal tariffs have limited dairy plants by about $ 2 billion. Meanwhile, banks are depreciating their dairy portfolios, and it has become more difficult to obtain operating loans.
American farmers tend to struggle to stay afloat. According to the U.S. Dairy Export Council, dairy exports to China, which was once a fast-growing market, fell more than 40% in the first quarter of 2019.
Meanwhile, according to Ford, dairy farmers received only about $ 250 million in the first round of government payments. Farmers “would like something else to reflect the market losses that hit them,” said Beth Ford.
The latest Trump Administration aid package for US farmers is a $ 16 billion program that includes direct payments to producers of $ 14.5 billion.
On Thursday, May 23, the US Department of Agriculture announced that dairy producers would receive payments determined by their production history. There were no other details about how much they would receive.
“I do not know how exactly this will be distributed. Of course, we have expressed concern of the administration, especially regarding dairy farmers who did not receive a significant amount in this first round and are under tremendous pressure. We will see what the administration has distributed, what will come of it. The math wasn’t amazing last time, ”Ford said.