U.S. President Trump leads daily coronavirus response briefing at the White House in Washington
Reuters
(Photo: Reuters)

On Thursday, President Donald Trump announced that he instructed the USDA to utilize all the funds and authority available to financially assist farmers who have been affected by the coronavirus pandemic and to ensure that food supply is stable, healthy, and secure.

According to those familiar with the plan, the administration intends to launch the support package next week.

The farmers have seen damages, and the virus has weakened the commodity demand outlook—farmers who had already struggled from the trade conflict between America and China.

Fruit and vegetable farmers have allowed their production to rot in some areas, as demand fell after restaurants closed. Simultaneously, several dairy farmers resorted to discarding milk as the need crashed for cheese and butter.

Trump's Twitter Post

In a Twitter post on Thursday night, Trump claimed he was eager to assist the farmers, most notably the small farmers currently suffering amid the COVID-19 pandemic.

The President's posts did not include details, however last month, Congress approved the Coronavirus Relief Act that included $23.5 billion in farmers' assistance. To date, the manner in which the funds will be distributed has not been addressed.

Over a phone call on Wednesday, Secretary for Agriculture Sonny Perdue stated that he wanted to disseminate the assistance for farmers "sooner rather than later."

Perdue had also mentioned on Twitter that the USDA would be utilizing all the funds they have been provided to develop a project which involves direct payments to farmers affected by the coronavirus and other purchasing methods to reinforce the supply connection between producers and consumers.

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The Timing of the Aid

Members of the USDA did not immediately reply to the question of the timing of the aid plan.

Farmers and agricultural groups are an essential component of Trump's political core this year. However, this isn't the first time that the agriculture industry has been supported by the administration. The last time the industry was suffering Trump administration helped out with a $28 billion loan during the trade war.

The USDA has been given specific direction by congressional law on how to administer the assistance. However, it instructs the USDA to cover dairy as well as livestock and crop producers, including fruits and vegetables.

The USDA received a six-page letter from the American Farm Bureau Federation, which addressed sectoral demands. Dairy farmers called on the government to compensate producers for the cutting of milk production and the buying for food banks of cheese and butter as well as other dairy products. After the ethanol rates plummeted, biofuel producers would also like to see assistance.

On Wednesday, Perdue has said that the Department will push to disperse its first package of funds, yet it has to wait until around the beginning of the summer for the latter to use.