For the trade war, Trump has launched a millionaire grant for the field

United States
yesterday announced that it will compensate for up to $ 12,000 million losses suffered by agricultural producers as a result of the trade war that this country is waging against China, the Union European Union, Mexico and Canada, following the decision of the


President Donald Trump
to apply customs duties to products imported from these origins.

The first reaction to the measure was the change in the soybean price trend on the Chicago Stock Exchange, where $ 4 oilseeds at the end of the wheel. In fact, at the time of setting the adjustments, the blackboards showed increases of US $ 3.76 and US $ 3.67 for the August and September contracts, whose values ​​were 315.26 and $ 317.28 per tonne. Since the beginning of the trade war with China, the world's largest buyer of soybeans, the price of US oilseeds has dropped by about 20%, compared with 391.97 dollars in force at the beginning of March. This collapse was accentuated after the Chinese government applied a 25% tariff on the product coming from the United States, in retaliation for the tariffs set by Trump.

According to Reuters, United States Secretary of Agriculture, Sonny Perdue, explained that the aid package will be funded by the USDA Commodity Credit Corporation ( Department of Agriculture of this country) and, therefore, will not require Congressional approval. "Obviously, this is a short-term solution, which will give President Trump time to work on a long-term trade policy," Perdue said. The aid will reach producers of cereals, livestock (vaccines and pigs), milk and fruit, among others, in three ways: direct payments, public food purchases and aid for the development of food. new markets.

Rising bullish soy, but on Wall Street has encouraged the rise in the share of rural-related companies, such as Deere & Co., AGCO Corp. and Caterpillar, for operators belief that subsidies will encourage investment in

And more by chance than by chance, the announcement of official aid for the US field found Trump in the middle of the countryside in Kansas City, Missouri, ahead of the November legislature. From there, he will continue his support tour for Republican candidates for Iowa and Illinois, the two largest soybean and corn producing states in the United States.

In the 2016 presidential elections, Trump won in 16 of the 18 states that contribute nearly 95% of American soybeans. It is in these areas that the trade war generates the greatest social discontent and this will be where most of the subsidies announced yesterday will go.

Already on April 9 Trump had been trying to appease the minds of producers by noting in his Twitter account that "if during negotiations they want to hurt farmers because they think it hurts me I tell them that our producers are great patriots, in the long run they will be much stronger than now. " Yesterday, in Kansas City, he reiterated that "the producers will benefit" by focusing on this trade confrontation.

Scott Irwin, an economist at the University of Illinois, told Reuters that most of the help should be made by direct payments. "This will be the biggest and probably the most controversial part." He added, "We have never compensated farmers directly on such a large scale."

For his part, Brian Kuehl, executive director of the Farmers for Free Trade organization, concluded that "the best relief for the trade war would be to end the trade war, farmers need contracts, no compensation, this proposed action is just an attempt to mask the long-term damage caused by tariffs. "

Among these damages is the possibility of losing markets. They know that the rest of the agricultural suppliers are taking this opportunity to take the place that the United States neglects.