$28 billion farm bailout from trade war now exceeds net cost of auto bailout

A couple of years ago, a pep talk from Trump might have drawn raucous applause from one of the president’s key constituencies. This time the crowd was subdued. “The aid package that has come in is a relief, and it softens the landing, but it’s not a solution, it’s a Band-Aid,” says Stan Born, a farmer who attended the event. When asked if the payments make him whole, Born, who grows 500 acres of soybeans near Decatur, responds, “Of course not.” He’d rather have free trade, he says.

China hawks in Trump’s administration want Beijing to quit subsidizing strategic industries, yet that hasn’t deterred the White House from doling out billions in aid to American farmers, who have become more dependent on government money than they’ve been in years. At $28 billion so far, the farm rescue is more than twice as expensive as the 2009 bailout of Detroit’s Big Three automakers, which cost taxpayers $12 billion. And farmers expect the money to keep flowing: In an August survey by Purdue University and the CME Group, 58% said they anticipate another round of trade aid next year…

For American producers, the hit to exports has further strained finances that are at a breaking point because of a six-year slump in prices for agricultural commodities. Net farm income is projected to be down 29% this year from 2013 levels, and debt to total $416 billion.