The US government allocates $ 16 billion to help farmers

on Thursday, the U.S. government officially announced the allocation of $ 16 billion to compensate for losses from a trade war with China. Of this amount, 14.5 billion $ will be paid directly to the producers, and the balance will be sent to the food distribution within the country and the development of new markets for agricultural products of the United States.

the assistance will not be a target for the main crop, which the US exported to China – soybeans and will be distributed to other crops. Although initially experts believed that farmers will receive $2/bushel of soybeans, which amounted to approximately 25% of its market value.

USDA announced that assistance will not depend upon the specific figure the tone or culture, and will be calculated at the same rate for each County that will depend on the amount of damages incurred by the region as well as the amount of land that is processed.

Specific numbers in terms of the bushel was not called, to avoid pressure on the market, however the payoff will probably be bigger than last year, because now allocated 14.5 billion $ compared to $10 billion.

First payments will be made in July or August, and by 2020 it will have two tranches. However, in ICH I hope that with August trade deal with China will be signed.

the soy Prices on Tuesday fell but yesterday on the news about the allocation of aid recovered to of 301.2 $/t