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Entirety of trade aid depends on China

Ag Secretary Sonny Perdue says getting a deal with China finalized before the first round of trade aid is expected is unlikely.

“President Trump will visit with President Xi at the G20 in Japan, but that will be late June, it will be very difficult to understand how a trade deal could be consummated prior to that first payment.”  

USDA will be splitting the $16 billion Market Facilitation Program into three payments over the next year with the first expected by the end of July and into August.

“I would look at the first tranche at being more of a certainty this time and then the second and third tranches to be dependent on progress we make on our trade discussions and hopefully a deal.”       

Perdue says if a deal is struck in the meantime, the program would be deemed unnecessary.

“If we get trade, then we’ll see how the market responds and make the call at those particular times.” 

Perdue told reporters Thursday it remains to be seen if the program continues into 2020 and will depend on if a deal can be finalized with China.