US President Donald Trump has announced a $ 19 billion bailout package for farmers affected by the Coronavirus crisis.
President Trump said on Friday that under this relief package, farmers will be provided direct assistance of a total of $ 16 billion to increase their income. Also, the government will spend three billion dollars to purchase meats, dairy products, and other food items from farmers and livestock farmers. Financial assistance of $ 14 billion will be provided in July to further help the Department of Agriculture.
What Donald Trump said
“This will help our farmers and livestock farmers…”
Donald Trump’s government has given a bailout package of $ 28 billion for agricultural trade in the last two years. On the same lines, this scheme of putting direct money in the account of farmers and large-scale government procurement has been introduced. Farmers and rural communities are very important from Trump’s political base as he is going to face elections later this year.
The goods purchased under this scheme will be distributed among the poor, school students and the elderly under food banks and other programs.
The closure of restaurants, school cafeterias, and other commercial food service operations has affected markets for agricultural products, especially dairy, meats, and other products. The food service industry is a major buyer of cheese, butter, meat, fresh vegetables, and fruits. According to the Dairy Farmers of America Co-operative, farmers are dumping eight percent of their milk production.
This financial aid was also included in the Coronavirus relief package passed by Congress last month.