Record agricultural subsidies will account for 40 percent of U.S. farm income this year


The federal government will send a record $46 billion to farmers this year, mostly in the South and Midwest, and the payments have "accelerated in recent weeks as the president looks to help his core supporters who have been hit hard by the double whammy of his combative trade practices and the coronavirus pandemic," The New York Times reports. "The breadth of the payments means that government support will account for about 40 percent of total farm income this year. If not for those subsidies, U.S. farm income would be poised to decline in 2020."
Even with the gush of cash from the White House, farmers are experiencing a rise in bankruptcies and declining sales, and bipartisan critics in Congress "have argued that small farmers have missed out on the bulk of the bailout, while large and some foreign-owned farms have benefited," the Times reports. The U.S. Department of Agriculture used an accounting trick to funnel some of the money to tobacco farms in North Carolina, savaged by China's retaliatory move to stop buying U.S. tobacco in 2018. Corn, soybeans, lobsters, and peanuts have also been pummeled by Trump's trade wars with China and Europe.
The Government Accountability Office found last month that $14.5 billion of farm aid in 2019 had been handed out with politics in mind, and the Office of Special Counsel determined last week that Agriculture Secretary Sonny Purdue improperly boosted President Trump's re-election while touting the Farmers to Families Food Box Program in August during an official event in North Carolina.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"That's what's going to continue to happen — four more years — if America gets out and votes for this man, Donald J. Trump," Purdue told attendees. The USDA was ordered to reimburse taxpayers for Purdue's expenses attending the event, but the department is pushing back, insisting that Purdue did not "encourage attendees to vote for a candidate or party or advocate for a partisan political group."
"Farmers are not the only constituency benefiting from the president's largess," the Times notes. "He has promised $200 prescription drug cards to millions of seniors, approved $13 billion in aid to Puerto Rico, which could help his prospects in Florida, and he directed his Agriculture Department include letters signed by him in millions of food aid boxes that are being distributed to the poor." Read more at The New York Times.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Why does the U.S. need China's rare earth metals?
Today's Big Question Beijing has a 'near monopoly' on tech's raw materials
By Joel Mathis, The Week US
-
When did divorce begin?
The Explaine Couples have always split up, but the institution has undergone major changes over the years
By David Faris
-
What are your retirement savings account options?
The explainer The two main types of accounts are 401(k) plans and individual retirement accounts (IRAs)
By Becca Stanek, The Week US
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US