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Proposed relief package could cause more trade problems

An ag economics professor at Purdue University says the proposed trade relief package could cause even more problems for farmers.

Wally Tyner says other countries, like Canada, are trying to bring a World Trade Organization case against the U.S. because they say the USDA’s proposal has created an improper subsidy.

“It could lead to a subsidy war in addition to a trade war because the subsidies are not supposed to be tied directly to production and this is tied directly to production,” he says.

He tells Brownfield the relief package will likely have little impact on farmer decisions and the market.

“It will be an income transfer because the crops were already in the ground, were already growing, and all the inputs were already used by the time this was announced,” he says. “So no farmer decision has changed because of it.”

Tyner says both the US and China are being hurt by the trade war, and the longer that it drags on, the harder it will be to come to a resolution.

Audio: Wally Tyner, Purdue University 

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