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Economist says Trump aid package lacks substance

An ag economist says the aid announced by the Trump Administration on Tuesday to help American farmers impacted by the trade wars lacks substance.  “There are really no details that are going to help producers sleep better at night.”

David Widmar with Ag Economic Insights says farmers don’t have anything tangible to plug into their farm budgets or help prepare for the 2019 growing season.   “There was a promise today that this was a one-time deal,” he says.  “Some of the indirect impacts – the acreage shifts, the tough budget situations – will probably still be around here in 2019 with no apparent aid or support that is coming beyond this growing season.”

He tells Brownfield there are also concerns that any assistance could result in WTO violations.  “The USDA is looking at that – and thinking about that,” he says.  “But given the stance that Trump and his officials have put on the WTO – kind of a critical eye – I’m not sure how much that played into their decisions.”

Widmar says ultimately producers need a resolution to the trade disruptions, not assistance programs.

AUDIO: David Widmar, Ag Economic Insights