USDA will release $3 billion and reopen Farm Service Agency core services

Despite some bumper crops, American farmers have
had a tumultuous season. (Photo by Jed Owen, Unspash)

U.S. farmers are harvesting big crops, but many are reaping little or no profit. To address some of their economic strife, the Department of Agriculture is "planning to release more than $3 billion in aid to U.S. farmers that had been frozen as a result of the government shutdown," report Natalie Andrews and Patrick Thomas of The Wall Street Journal.

Bumper crops should be a boon for American farmers, but instead they are "fueling a glut that is driving down prices. Rising costs for fertilizer and farm equipment are also squeezing their balance sheets," Andrews and Thomas explain.

In addition to cash assistance, the USDA will "resume Farm Service Agency core operations, which have been closed for three weeks during the government shutdown," Andrews and Thomas write. "This will allow farmers to access aid, including some safety-net programs." 

President Donald Trump considered using tariff revenue to fund a bailout package for farmers earlier this year; however, the $3 billion comes from the Commodity Credit Corp., the same fund Trump tapped to help farmers weather his first-term tariffs. 

Before the government closed, the Trump administration was considering another $10 billion for farmers "struggling because of Trump’s trade war, but that new relief is on hold while the government is shut down," the Journal reports.

President Trump will be in Asia next week, where he "plans to push Chinese leader Xi Jinping to buy U.S. soybeans to help struggling American farmers," Andrews adds. "The two leaders are scheduled to meet on the sidelines of a summit in South Korea."