USDA details trade damage estimate calculations
The USDA has published details of how it calculated damage estimates from trade disruptions for its support package it announced in July.
The department's office of the Chief Economist developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by China, India, the European Union, and Turkey to set commodity payment rates and purchase levels.
It employed the same approach often used in adjudicating World Trade Organization trade dispute cases, the USDA said.
“Just as we did before, we want to be transparent about this process and how our economists arrived at the numbers they did," Agriculture Secretary Sonny Perdue said
"Our farmers and ranchers work hard to feed the United States and the world, and they need to know USDA was thorough, methodical, and as accurate as possible in making these estimates.
"We listened to feedback from farmers on last year’s programs and incorporated many of those suggestions into today’s programs. While no formula can be perfect in addressing concerns from all commodities, we did everything we could to accommodate everyone.
The full description of the Trade Damage Estimation for the Market Facilitation Program and Food Purchase and Distribution Program is available on the website of USDA’s Office of the Chief Economist.