The agro-industrial complex of the state of Montana (USA) is experiencing the negative consequences of the policies of the Donald Trump administration regarding tariffs on foreign goods and the exit from vital agreements.
The state received a blow in the form of a fall in annual agricultural income of more than $ 1 billion. The main reasons for the drop in income is the trade war between the United States and China and the subsequent increase in trade tariffs. This led to a collapse in wheat exports from Montana to China. Another reason was the US withdrawal from the Trans-Pacific Partnership program, which led to the cessation of Montana's wheat and cattle exports to important state markets in Japan.
Colleen Watters, a spokeswoman for the Montana Committee, noted that due to current trade policies with regard to China and trade with Japan, state farmers growing wheat and barley have already lost $ 150 million.
The USDA allowed up to $ 12 billion in financial assistance for farmers, including $ 1.2 billion to offset the loss of export earnings and $ 200 million to expand foreign markets.
The Montana Grain Producers Association subsidized some farmers at 14 cents per bushel, but tariffs and withdrawal from the Pacific Agreement cost them a loss of about $ 1.40 per bushel. “We look at the current year so that we may not be able to pay the bills,” said Lyle Benjamin, president of the Montana Grain Producers Association.
