An American Enterprise Institute report authored by former USDA Chief Economist Joe Glauber suggests the size of payments made to farmers in 2019 may violate World Trade Organization Commitments. American Soybean Association Board member and South Dakota grower Kevin Scott says that’s a bit of a concern for growers this year who’ve needed the assistance.
He says he thought the Market Facilitation Program payments would adhere to WTO rules.
The payments approved by the Trump administration total roughly $28 billion while Glauber says current WTO rules require annual U.S. domestic supports should not exceed $19.1 billion. Scott says for several years U.S. farmers have received support below WTO requirements.
Glauber also notes that the recent U.S. trade aid payments could impact any attempt by the Trump administration to seek further reforms in the WTO.
