[25 July/Bloomberg]

The Trump administration proposes to deliver USD12 billion in aid to farmers who are affected by the trade war. The announcement raised soybean futures prices. Senator, Ron Johnson, said his thoughts were with the farmers and said they wanted trade not aid. Farmers were a key part of the rural political base that elected Donald Trump who promised they would emerge from the trade war better off. Mr Trump added the farmers would be the biggest beneficiaries and just needed to be patient. Farmer groups welcomed the assistance, but wanted a resolution of trade disputes. Republican Senator, Chuck Grassley, said the commodity supports weren’t a long term solution and would prove costly to taxpayers. Agriculture is one of the only American industries that runs a trade surplus. Canada, China and Mexico were the biggest importers of U.S. farm goods. Soybeans were the second most valuable crop after corn.