According to Bloomberg, Trump’s trade war with China has caused farmers’ incomes to fall the most in three years. The Commerce Department said this has depressed income growth nationwide. American farmers have also had to deal with low commodity prices and a slew of natural disasters.
Trump relied heavily on rural voters in the 2016 election, which emphasizes the pressure Trump is under to end the trade war.
Farming incomes hadn’t fallen previously due to one-time subsidy payments designed to compensate farmers for losses related to the trade war. Top economic advisor Larry Kudlow says the White House is prepared to help agriculture further. Yet, Trump’s proposed budget would decrease federal subsidies for farmers even more.
Trump has promised that the trade war will eventually help farmers. “We’re doing trade deals that are going to get you so much business, you’re not even going to believe it,” he said at American Farm Bureau Federation’s meeting in New Orleans in January.
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