Farmer says aid package is 'band-aid' for tariffs

Two farmers share how tariffs and Trump's bailout affect their businesses.
9:37 | 05/23/19

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Transcript for Farmer says aid package is 'band-aid' for tariffs
David do want to start. With this news on the trade war with China the president announcing today that he's in Dalian another infusion of cash for America's farmers sixteen billion dollars. On top of the twelve billion dollars there was. Handed out through I depression era program by the Agriculture Department last year this is for farmers of soybeans cotton corn wheat and dairy. In there you saw it. Sixteen billion. Yeah seven the president is announcing sixteen billion dollars in aid for farmers this is the second installment in aid for farmers. I since this ongoing trade war has been raging. I and basically what the federal government is going to be doing here is directly buying some of those crops. That these farmers otherwise aren't selling because of the trade war. And we I have to farmers here with us in the briefing room today to talk about the impacts. That's those those tariffs are having on the sale of their products and I'm joined here in. In the brief interim Washington by Matt Russell he is a fifth generation Iowa farmer. You your husband farm mostly produced tomatoes some grass fed beef as well aliens in your trailer for sometime also joined from could I California by hobby years in Mora. Is a very farmer with GSM organics look at it looks like he's out there in the field right now Javier great to see you. I'm out there I'm gonna sort with Matt Matt. You had actually works. As a member of part time member of the ED Farm Service Agency few years back out in Iowa. Your well connected in the community there how. How harmful had these tariffs and then for Iowa farmers and do these payments that the president is talking about today do they make a big difference. Yet so there they make a difference on. I think the biggest thing is the lot the lack but the loss of the traded that that's the big story this doesn't make up for all the loss. All the laughs he mocks mark Hilan arises and yes of this is is a band aid. But structurally the traders having an enormous impact you know and I mean I am in town today to testify that the climate crisis talk but climate change and agriculture. And and that's another option where we can be paying farmers for climate services across the country and not be good public policy. Getting something for taxpayers. This is preventing some real hemorrhaging but we're not getting a lot out of it. You're knocking a lot out from these payments the terrorists are taking a bit of a bite hobby air understand. Odd that it he's also hitting your industry the very Industry, California as well as your goods aren't directly. Are directly be exported to it to its overseas. First day but you're also seeing the impact of these terrorists out there tell us about the outlook. Well being but what. Their products on her Oklahoma. I I. I. And reverend. Our. Oh. And so typical. Have been on in our restaurant. Alone and it will. Be. Will. Issue. Double what I did it typically. Yeah and that is that's really you've experienced U farm mostly produced tomatoes he said some beef. It a hobby ears point there is even though he's not exporting a lot of them. Big agribusiness exporters because the Reid turned to re not gonna sell more dump domestically which is it making it harder for him sesame you've experienced. That's on a fifth generation farmer Mike for months our group on a thousand acre commodity farm my parents her brother social are still farming. In that system so I'm still connected and are far not directly but still connected to the impact that this trade war and then these payments are having. So that this is that this is something that impacts as heavier since the whole country. Suspicious especially soybean farmers and they're getting the bulk of the payments but it's it's a catastrophe for. Country it and help us understand what when people when farmers talk about the biggest pain being the loss of markets. In China what does that mean. Well it means they spend any help break it does they spend years cultivating. They lost Shenzhen buyers are supply and demand so if you've got a lot of supplying you don't have as much demand then you've price goes down if you got a lot of demand. An event then you could hear there's more. The price goes up vs opera so when you we take China off the table for us our demand for our products we have suddenly a huge amount of supply. And the pull up and the price collapse. You know where to go with that and other good countries Wilson swoop in and and supply chocolate that are grimy and I think. Part of the distraction is this is the big story. Going forward and agriculture's climate change. And how we gonna get farmers engaged. On being part of the solution. And using public policy to do this I think we're we're seeing. Abuse of public policy to throw bandits. And not get something that benefits farmers all over the country it is. Going forward its solution so the trade war is death we creating a crisis. And these bandages are in response to that but it's not a good use of public policy take to get us into the future. Pretty expensive band aids if we're talking now about sixteen billion dollar store and Phelps is go back to you at the White House because. A lot of people online today or when he where is this money coming from. The president obviously doesn't have power of the purse that belongs to congress. And yet out of thin air today he is announcing sixteen billion dollars in payments to farmers. What it what are you been able to learn about where it's coming from and how was approved. DeVon in the short term this money is coming out of a depression era program through that US Department of Agriculture. I act has supplement these farmers by. Find their crops directly but it's important to keep fact checking the administration here because the president keeps claiming that some how China is paying for east Harris. And it doesn't matter how many times he's as it it's just not real. I'd EZ US importers are the ones you pay for these tariffs as attacks they then pass. That extra cost onto consumers. Meaning that the US consumers who who are buying these products are ultimately the ones who are on the hook for this. Seven so it's just not true that some how China is paying for this but right now damage the money's coming out as I UST. And I want to ask you before that you're Jordan about the politics in all of this and we'll talk to Matalin a bit about that as well. If there. There's been a lot of reporting in conversation out there but the president. Taking this action he also dropped tariffs against Mexico and Canada earlier this week on steel and aluminum. Because of the impact that was had answered businesses he's got his eyes are on the middle of the country and the politics. That this is having as he heads in the reelection. Yet at and it seems like the president steps back from those other trade disputes to really put the focus squarely on China. But seven farmers the middle of the country that's one of the president's strongholds politically. We now in the president knows well and so that's why he's. Putting his eye toward helping these farmers but as you now in as the farmers even talking to you. Note this aid that they federal government is offering doesn't come close enough to really closing that gap so the president is under pressure here politically. Take in this trade dispute. He might risk losing some votes in twenty honey. And and think stern felt Schwartz at the White House and map before we let you go. Iowa such a critical state as we head into the joints when he presidential election. Here to Republican senators their Joni here and struck Grassley Bryan sparks are breaking with the president on this asking for him to ease up on the tariffs. I'm it based on the circles that you are in in the conversations it's your having do you see a political impact of these tariffs. In 20/20 is is it gonna make it harder for Republican. Farmers that you know independent farmers it's you know to support president trump because the tariffs. I think. I think just from a broad political standpoint the economy has a lot to do worth. The party in power. And elections that's this kind of common knowledge. If the farm economy stays in the slump that it's and it's going to have an impact. At least for farmers because the economy is in a real crisis and we're seeing a a cyclical downturn turned into a major crisis because of these terrorists that's gonna happen and. Heavy while the whole economy and I'd be doing well the farm economy in Iowa is certainly feeling the pains of that is laying on a lot of mines. I'm Matt Russell thank you so much has generation farmer great to have you with this in the briefing room from Iowa and our thanks. To Javier some more as well joining us from California Javier thank you so much and great to see. Others beautiful buried behind you've been locked up with European season out there to meet you sir are important and our sacred to see Javier.

This transcript has been automatically generated and may not be 100% accurate.

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