Federal watchdog: USDA overpaid corn farmers by $3B

By DAVID PITT of the Associated Press. Excerpts: 

"The Trump administration overpaid corn farmers by about $3 billion in federal aid in 2019, and farmers in the South were paid more for the same crops than those elsewhere in the country, a federal watchdog agency has found.

The Government Accountability Office said in a report released this week that international disputes resulting from tariffs imposed by President Donald Trump hurt farmers but that the U.S. Department of Agriculture's county-by-county methodology for computing the extent of damage was flawed, leading to overpayment and inconsistent compensation.

“Though corn yields are higher in the Midwest and West, corn producers received an estimated average of $69 per acre in the South, $61 in the Midwest, $34 in the Northeast, and $29 in the West,” the report said.

The GAO also estimated that payments to corn producers were approximately $3 billion more than USDA’s estimate of trade damage to corn, while payments to soybean, sorghum and cotton producers were lower than their estimated trade damages."

"Trump imposed higher tariffs on certain products from China, Europe, Canada and other key trading partners in 2018. China, Canada, Mexico, the European Union, Turkey and India responded with tariffs targeting U.S. products, including agricultural commodities. In 2018 and 2019, many U.S. agricultural exports declined and the Trump administration poured money into support for farmers, including the Market Facilitation Program."