Some Farmers Are Using Loopholes To Increase The Size Of Their Bailout Packages
President Trump’s trade disputes with China have caused farmers to struggle enormously. In response, his administration introduced a $12 billion aid package for the farmers. Yet, some farmers are finding ways to get much larger bailouts than Trump planned, according to the Detroit Free Press.
One Missouri soybean farm registered for relief as three entities, all in the same location. The operation received almost $2.8 million. Five other farms were given over $900,000. Three more were given over $800,000. Another sixteen got over $700,000, and 3,000 other farms received more than the cap of $125,000.
Beneficiaries of the payouts defended themselves, claiming that even the larger amounts did not cover all of their losses from Trump’s trade war. On the other hand, critics say loopholes such as these are damaging the system.
U.S. Senator Charles Grassley said that large farms are getting enormous subsidies “through underhanded legal tricks. They’re getting richer off the backs of taxpayers while young and beginning farmers are priced out of the profession. This needs to end. The Department of Agriculture needs to re-evaluate its rules for awarding federal funds and conduct more thorough oversight of where it’s funneling taxpayer dollars.”
At Peterson Farms in Kentucky, the farm collected $863,560. Bernard Peterson, co-owner of the farm, said that it didn’t make up for the farm’s losses. He said, “It’s a big number but there are a big number of people directly depending on the success of our operation in the community.” According to Peterson, 30 families are supported by the operation year-round, and more families depend on the operation at harvest time.
In May, the Trump Administration announced another aid package for $16 billion.
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