(The Center Square) – Democratic New York Gov. Kathy Hochul has rolled out a $30 million tariff “relief” program aimed at helping the state’s farmers deal with the impact of higher prices.
The new Agricultural Resiliency Against Tariffs Program, unveiled Monday, will allow farmers to request up to submit applications for up to $25,000 in relief from the state as part of a $30 million aid effort aimed at easing the hit to farmers from the federal government’s tariffs, most of which have been ruled illegal by the U.S. Supreme Court.
Hochul said the tariff relief program “will provide the much-needed relief to New York’s farmers who feed our communities” who are struggling to absorb the cost of chemicals, fertilizers and machinery that have been driven up as a result of the tariffs.
“The tariffs imposed by the Trump administration are reckless and damaging to so many of our industries, including our agricultural producers, who rely so heavily on the forces of international markets,” she said in a statement.
Hochul said the program, which is being funded by a carve out in the $268 billion state budget, will provide direct payments starting at $1,000 to eligible dairy farmers and those working with livestock, specialty crops and aquaculture.
To be eligible for the relief, farms must have at least two-thirds of their federal gross income in excess of $30,000 derived from agricultural activity, grow eligible crops and provide eligibility and production data that’s certified by a financial professional, according to the Hochul administration.
Trump’s reciprocal tariffs, which were announced more than a year ago, forced most major countries to broker new trade deals that repealed tariffs and non-tariff barriers on U.S. goods.
The U.S. Supreme Court ruled in February that Trump’s tariffs, his 10% baseline and anti-fentanyl tariffs on China, Canada and Mexico were illegal because they are not allowed by an emergency powers law. Justices ordered the Trump administration to refund businesses that were impacted by hundreds of millions of dollars in new costs from the tariffs.
Nationally, small-business importers have paid an average of $306,000 more over the past year, underscoring the widespread effect of the administration’s trade agenda, according to the Center for American Progress. Roughly 90% of tariffs are paid by U.S. importers and consumers, and more than 4 in 10 small businesses report tariff-related price increases, the report’s authors noted.
In New York, farmers are paying an estimated $20,000 more a year collectively for feed and other essentials, according to the Hochul administration.
New York’s wine industry, the third largest in the nation, has seen significant impacts. Canada is the largest market for U.S. wine exports, including New York, and last year New York exports to this bordering country were down 77%, a major market loss at a time when the U.S. wine exports decreased 33% overall, according to the Hochul administration.
“Farmers get hit by tariffs on both the export and import side, losing market opportunities while also facing rising costs of things like grain, equipment and fertilizer,” New York State Agriculture Commissioner Richard A. Ball said in a statement. “This program will ensure that the producers impacted by tariffs will receive some level of relief to help offset these new expenses and safeguard their operation.”
The Trump administration last week asked Congress to approve $11 billion in federal assistance for farmers facing high fuel and fertilizer costs since the Iran war. Lawmakers have also proposed a $12 billion relief package for farmers impacted by the tariffs.
