Will There Be a Third Round of Bailouts for Farmers in 2020?
In early 2018, the U.S and China fired the opening salvos of a two-year long trade war. In that time period, both governments would impose strict tariffs, severely limiting the other’s ability to engage in open trade.
Prior to 2018, China was one of the primary markets for farmers and agricultural companies in the U.S. Then, suddenly, China announced it would no longer be purchasing major U.S agricultural products, like soy, dairy, and wheat. Since then, U.S farmers have been struggling to find ways to make up for the lost profits. Today, many farmers are hoping that federal bailouts will be able to keep their industry afloat.
Are you concerned about how tariffs might continue to impact your industry and business in the years to come? If so, USDA loans might be able to provide you with some peace of mind. In this article, we’ll discuss the possibility of a 2020 bailout and how USDA loans can protect your financial future.
Recent Federal Bailouts for the Agricultural Industry: A Brief Timeline
The Trump administration’s efforts to help farmers affected by the trade war began only months after the first tariffs were imposed. In July 2018, $12 billion was promised to U.S farmers, who were already beginning to feel the loss of China.
Then, almost one year later in 2019, the federal government introduced a second round of bailouts for U.S farmers. This time, it pledged to send $16 billion in attempts to revivify the struggling agricultural industry.
Can Farmers Expect to Receive a Third Bailout in 2020?
Nothing has been said for certain, but Trump has made hints that a third bailout could be coming soon. In February of 2020, he tweeted (in all caps): “If our formally targeted farmers need additional aid until such time as the trade deals with China, Mexico, Canada and others fully kick in, that aid will be provided by the federal government.”
Of course, given the new financial pressures created by coronavirus, all new economic policies are up in the air. Whether or not a 2020 bailout actually materializes, it’s wise for farmers to protect their property’s future financial security. Thankfully, USDA loans are a great option for US farmers who want to stay one step ahead of economic uncertainty.
Start Looking for USDA Loans Today
At MSF Agriculture, we specialize in helping owners of small farms to find a loan that will work for them. To learn more about our services or about the benefits of USDA loans, please contact our office!