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John Hoeven

Republican

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via: agriculture.com

Hoeven: Shutdown Could Delay Tariff Assistance Announcement

The government shutdown could delay Trump administration efforts to give tariff support to farmers, top Senate Ag Committee appropriator Sen. John Hoeven, R-N.D., told reporters Friday.

Treasury Secretary Scott Bessent told CNBC on Thursday the administration could outline its tariff assistance package as soon as Tuesday. But Hoeven said that timeline could shift.

“We're kind of looking at next week maybe to do something,” Hoeven told reporters Thursday. “But I think that could change now with the shutdown.”

Friday, senators again blocked two competing efforts to reopen the federal government, likely keeping it closed over the weekend until Majority Leader John Thune, R-S.D., reconvenes lawmakers Monday. The Friday votes were the fourth time Democrats voted down a House-passed Republican proposal over expiring health care tax credits.

Almost half of Agriculture Department employees have been furloughed in the shutdown, leaving the agency hamstrung and prompting multiple services to shutter.

The comments echo what some have already expressed privately. A person familiar with tariff assistance discussions who was granted anonymity told Agri-Pulse Thursday night that the department lack the staff to put together an announcement by Tuesday, if the government were to remain shut past Friday.

Sen. Roger Marshall, R-Kan., said that he had heard “different things” regarding the timing of an announcement but added he believes officials are trying to decide on a final number for the size of the package.

During President Donald Trump’s first term, the administration used the Commodity Credit Corporation (CCC) to deliver more than $20 billion to farmers to compensate them for lost exports.

The financial need could be even greater this time. The USDA estimates ag sales to China for the forthcoming financial year could slip below those of fiscal year 2019, the low point for U.S. ag exports to China during Trump’s first term.

Hoeven, however, would not comment on what size assistance package would be appropriate this time around.

“The administration will tell you that,” Hoeven said.

The president has indicated he would like to use tariff revenues to fund any assistance. Hoeven told Agri-Pulse earlier this week that he has been working on changes to Section 32, which would allow the administration to divert some tariff receipts to farmers. But Friday, he also stressed again that Congress wants to make sure the administration has multiple tools and avenues available, including the CCC, which Trump raided in the last administration to fund tariff assistance.

“We've got that tool available for them, and we're working on some others too,” Hoeven reiterated.

But the CCC’s borrowing authority is severely depleted, with some estimating it could now sit at around $4 billion out of a potential $30 billion. The administration is also set to tap the fund for other farm assistance payments in the coming months.

Congressional staff and administration officials continued discussions over the contours of an assistance package Friday, according to a person familiar with discussions. The person added that ultimately, a support package could incorporate multiple vehicles and mechanisms.

Analysts have pointed out that one of the risks of relying on tariff revenues to fund farmer support — as a package based solely on Section 32 would — is that the Supreme Court could still rule that many of Trump’s new tariffs are illegal and order refunds. The court is set to hear oral arguments in November for a case challenging the legality of many of Trump's new tariffs.

However the package is designed, Marshall said he is hoping it includes support for growers of commodities beyond soybeans — which have received the bulk of public attention because of their steep export losses and heavy reliance on the Chinese market.

“I think the sorghum guys are hurting a lot more, proportionally, than the soybean guys,” Marshall told Agri-Pulse.