USDA Launches Second Round of Trade Mitigation Payments
USDA launched the second and final round of trade mitigation payments aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations. Producers of certain commodities will now be eligible to receive Market Facilitation Program (MFP) payments for the second half of their 2018 production.
USDA’s Farm Service Agency (FSA) has been administering MFP to provide the first payments to producers since Sept. 2018 for the first 50 percent of their 2018 production. MFP provides payments to almond, cotton, corn, dairy, hog, sorghum, soybean, fresh sweet cherry, and wheat producers.
Producers need only sign-up once for the MFP to be eligible for the first and second payments. The MFP sign-up period runs through Jan. 15, 2019, with information and instructions provided at www.farmers.gov/mfp. Producers must complete an application by Jan. 15, 2019, but have until May 1, 2019, to certify their 2018 production.
Eligible producers should apply after harvest is complete, as payments will only be issued once production is reported.
For farmers who have already applied, completed harvest, and certified their 2018 production, a second payment will be issued on the remaining 50 percent of the producer’s total production, multiplied by the MFP rate for the specific commodity.
Market Facilitation Program
|Commodity||First and Second Payment Rate||Est. Total Payment**
|Almonds (shelled)||$0.03 / lb.||$63,300|
|Cotton||$0.06 / lb.||$553,800|
|Corn||$0.01 / bu.||$192,000|
|Dairy (milk)||$0.12 / cwt.||$254,800|
|Pork (hogs)||$8.00 / head||$580,600|
|Soybeans||$1.65 / bu.||$7,259,400|
|Sorghum||$0.86 / bu.||$313,600|
|Sweet Cherries (fresh)||$0.16 / lb.||$111,500|
|Wheat||$0.14 / bu.||$238,400|
** Total payment rate on 100% of production
MFP payments are limited to a combined $125,000 for corn, cotton, sorghum, soybeans, and wheat capped per person or legal entity. MFP payments are also limited to a combined $125,000 for dairy and hog producers, and a combined $125,000 for fresh sweet cherry and almond producers. Applicants must also have an average adjusted gross income for tax years 2014, 2015, and 2016 of less than $900,000. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.
For detailed information, read the full USDA press release.
For more further information or to locate and contact local FSA offices, interested producers can visit www.farmers.gov.