USDA To Send $6B In Aid, Some Fear It’s Not Enough To Help Hoosier Farmers
Published: September 4, 2018 / Author: Indiana Public Radio
Finance professor Jeffrey Bergstrand was interviewed by Indiana Public Radio for a story on the U.S. Department of Agriculture’s announcement that it will send $6 billion in aid to farmers impacted by recent tariffs.
He says while the relief money may help farmers in the short term, spending more government cash will also hurt them and others.
“We have to borrow more money,” says Bergstrand. “This tends to raise interest rates. That hurts farmers too. I mean are they going to be compensated for a higher interest rates for borrowing costs in order to purchase capital goods and the equipment that they need in a very capital intensive industry.”