Farmers protest funding freeze on humanitarian aid contracts
American farmers are protesting after a decision to freeze funds for the purchase of products intended for humanitarian aid. According to Reuters, this decision affected, among others, soybean and corn producers who were supposed to supply goods worth $150 million (CAD 215 million).
The U.S. Department of Agriculture planned to purchase soybeans and corn from local farmers for humanitarian aid programs. These products were to be used in programs like Food for Progress and Food for Peace.
However, after January 20, President Donald Trump froze the funding for these initiatives. The new administration is cutting expenses they consider unnecessary.
Farmers in the U.S. are protesting. They won't sell government-contracted products
The decision to halt purchases affected many farmers who had already signed contracts for deliveries. Virginia Houston from the American Soybean Association reported that about 60,000 metric tonnes of this product are currently stored in warehouses.
The decision to remove these contracted purchases from the list of U.S. government expenditures sparked a wave of protests among American farmers. Farmers fear that halting aid programs will deprive them of an important market.
U.S.-funded aid programs offered farmers an additional market and an opportunity to promote their products overseas. The current situation, combined with low prices and uncertainty related to a potential trade war, puts them in a challenging position.
