The White House first floated the possibility of a taxpayer-financed bailout for U.S. farmers in late March. In the months that followed, Trump officials repeatedly insisted that an announcement on a multibillion-dollar bailout package was imminent.
This week, at long last, the president and his team unveiled the policy, assuring farmers that help is on the way — soon. The New York Times reported:
President Trump rolled out a $12 billion bailout for struggling farmers on Monday as he looks to shore up the finances of some of his most loyal supporters whose financial fortunes have been hurt by his trade war. … The payments to the farmers will be made by the end of February. The Trump administration will initially distribute $11 billion and is reserving another $1 billion to support growers of fruits and vegetables as needed.
At first blush, there’s a lot to like about the motivation behind the effort. American farmers are clearly struggling, they’re critically important to ensuring there’s food on families’ plates, and it’s tough to argue credibly that their plight should go ignored amid the nation’s economic challenges.
But just below the surface, the Republican administration’s policy suffers from some serious flaws. In fact, I made a top 10 list to highlight the problems with the White House’s initiative.
10. These guys have an awful track record. The last time Trump announced a $12 billion bailout for American farmers, it was during his first term. The policy fell far short, and farming bankruptcies climbed, even before the pandemic.
9. Trump is trying to misuse tariff revenue. At Monday’s rollout of the new policy, the president said the $12 billion bailout would be financed through revenue generated by his trade tariffs. But that’s not how any of this is supposed to work: Trump was effectively pitching the idea that he wants to help one group of Americans (farmers) by imposing taxes on a larger group of Americans (consumers and business owners), while pretending that foreigners are paying those costs.
8. Trump is wrong about the source of the money. Trump claimed that the $12 billion bailout would be financed through revenue generated by his trade tariffs, but that isn’t true.
7. Trump has no idea how his administration arrived at the $12 billion figure. A reporter asked the president about the bailout’s price tag. He mumbled something about “charts” before quickly moving on.
6. There’s no guarantee that the bailout will benefit the farmers who need the most assistance. As The New York Times reported, “One issue with payments of this kind — to any industry — is that it can be difficult for the government to match the payments to those who are actually hurt the most. Independent analyses found that the payments the Trump administration made to farmers in the first term disproportionately went to larger and wealthier farms.”
5. Trump’s one-time band aid misses the point. Farmers want markets, customers and contracts, not handouts. They’re not getting them because of Trump’s misguided agenda, and the $12 billion, if they see any of the money, won’t make them whole or prepare them for future challenges. 4. Trump’s one-time band aid probably won’t work. Farmers who receive a check from the White House will get a temporary boost, but with the industry struggling as a result of the president’s policies, and Trump reluctant to change direction, what happens when this cash infusion runs out? 3. The policy is rooted in partisan and electoral considerations. The president didn’t even try to unveil the bailout in a politically neutral way, declaring at a White House event that he considers this a priority because “the farmers like me, because you know, based on voting trends.” Left unsaid is what he would’ve done if the industry were struggling and he was under the impression that farmers didn’t like him. 2. Who else will get a bailout? If the White House is prepared to offer government assistance to one sector of the economy hurt by Trump’s agenda, administration officials should probably keep their checkbook handy, because the line of others who’ll also need a bailout won’t be short. 1. Trump’s trying to address a problem he created. The bailout, for all intents and purposes, is an admission of guilt: The Republican administration’s agenda is hurting his own country’s agricultural industry, thus the need for a bailout.
Steve Benen is a producer for "The Rachel Maddow Show," the editor of MaddowBlog and an MS NOW political contributor. He's also the bestselling author of "Ministry of Truth: Democracy, Reality, and the Republicans' War on the Recent Past."
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