Don Wick | When Washington Gambles with Rural America's Future
Farmers face financial hardship as a government shutdown looms while simultaneously promising relief payments through tariff funds known as "Trump Bucks." The situation highlights the dysfunctional relationship between agricultural policy and political gridlock in Washington.
• Government likely to shut down at midnight Tuesday due to lack of agreement on continuing resolution
• Administration proposes using tariff funds for direct farmer payments, but requires congressional approval
• Section 32 funds (30% of tariff revenues) typically used for commodity purchases for nutrition programs
• Cattle markets experienced extreme volatility after comments about potential heifer retention incentives
• Argentina temporarily lowered export taxes, causing China to purchase 35 loads of soybeans
• Basis levels vary widely across regions, from 80 cents under in southern Minnesota to $1.60 under in North Dakota
• Harvest beginning in northern regions with favorable weather and good yield expectations
• Government shutdown would delay all agricultural reports including the upcoming stocks report
• Commodity markets showing potential inflationary signals as gold approaches $4,000 and silver hits $45-46
• Farmers would prefer market-based solutions like year-round E15 rather than direct payments
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Thank you, Tommy G
