How & When The USDA’s $12B Will Help Farmers and Ranchers

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More details have been released for the $12b aid package to farmers and ranchers affected by the tariffs.  It is intended to help promote and offset costs for trade damage and marketing.

While this program was designed to provide relief from short-term effects of retaliation as a result of tariffs, it was noted that should the retaliations stop, this program will dissipate.  Other key notables are that applications will begin on September 4, 2018 — producers are being advised to apply soon, rather than waiting, as the USDA will begin analyzing data immediately as applications are received to best determine how money will be allotted (payments are expected to begin in January 2019).

Here are some key takeaways:

Market Facilitation Program (MFP)

  • Corn, cotton, dairy, hog, sorghum, soybeans, and wheat
  • Signup starts September 4, 2018 at local FSA office (ends January 15, 2019)
  • Split into two payment periods, this signup is the first period
  • The necessity of a second signup period will be determined by USDA (announcement around December 3, 2018)
  • Producers apply after 100% of harvest is complete and can report 2018 production
  • If requested, producer must provide supporting documentation for production
  • Producer must have certified crop acreage with FSA (CCC-578)
  • First signup is for payment on 50% of 2018 production, other 50% paid if second signup warranted
  • Application available at farmers.gov/MFP, in person, email, fax, or mail
  • Eligibility includes
    • Ownership in commodity
    • Actively engaged in farming determination for 2018 (CCC-902)
    • Average AGI for 2014, 2015 and 2016 less than $900K (2018 CCC-941)
    • Compliance of “Highly Erodible Land and Wetland Conservation” regulations (AD-1026)
  • $125,000 payment limit per person/legal entity for dairy productions and/or hogs
  • $125,000 payment limit per person/legal entity for corn, cotton, sorghum, soybeans, and wheat combined
  • MFP payments do not count against ARC/PLC payment limitations
  • Dairy production based off historical production reported for Margin Protection Program
    • Highest annual milk production marketed during the full calendar years of 2011, 2012, 2013
    • Must have been in operation on June 1, 2018 for eligibility
  • Hog payments based off total number of head of live hogs owned on August 1, 2018

See attached table for payment rates for each commodity covered by the program.

For the full details released by the USDA, view their press release here:  https://www.usda.gov/media/press-releases/2018/08/27/usda-announces-details-assistance-farmers-impacted-unjustified

Please feel free to contact Matthew Farrell, a K·Coe Isom Farm Program Services specialist, for questions surrounding this program, or for help navigating the application process: mfarrell@kcoe.com.

 

 

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