Package Details and FAQ's
These programs will assist agricultural producers to meet the costs of disrupted markets:
USDA’s Farm Service Agency (FSA) will administer the Market Facilitation Program (MFP) to provide payments to corn, cotton, dairy, hog, sorghum, soybean, and wheat producers starting September 4, 2018. An announcement about further payments will be made in the coming months, if warranted.
USDA’s Agricultural Marketing Service (AMS) will administer a Food Purchase and Distribution Program to purchase up to $1.2 billion in commodities unfairly targeted by unjustified retaliation. USDA’s Food and Nutrition Service (FNS) will distribute these commodities through nutrition assistance programs such as The Emergency Food Assistance Program (TEFAP) and child nutrition programs.
Through the Foreign Agricultural Service’s (FAS) Agricultural Trade Promotion Program (ATP), $200 million will be made available to develop foreign markets for U.S. agricultural products. The program will help U.S. agricultural exporters identify and access new markets and help mitigate the adverse effects of other countries’ restrictions.
Below you'll find the who, what, when and where regarding participation in the MFP program:
What:
Market Facilitation Program (MFP)
Provides a direct
payment to producers who have been negatively impacted by foreign
governments imposing tariffs on U.S. agricultural products, and have
disrupted marketing of agricultural commodities beyond the control of
producers in 2018.
Payment rates reflect
calculated impact that foreign tariffs have had on market prices.
The eligible commodities
were selected based upon evidence that market prices have been directly
impacted by foreign tariffs.
-
CROPS - Soybeans, Sorghum,
Wheat, Corn
-
LIVESTOCK - Dairy, Hogs
Who (Eligibility):
Crops - 2018 Actual
Harvested Production.
- Recognize there have
been crop losses/reduced yields in parts of State, MFP payments will be
made only on actual bushels harvested. (Yield loss due to weather-
events should be covered by crop insurance.)
- Acreage reports for crop commodities are required.
- Must be in compliance with HELC/WC provisions.
Dairy - Active dairy
operations as of June 1, 2018. Historical production
reported for Margin Protection Program (Higher of 2011, 2012, or 2013 marketed
production)
- Producers not
currently enrolled in MPP can participate in MFP and establish
production history.
- Must have ownership
interest and be actively engaged in farming
Average AGI cannot
exceed $900,000. (Tax years 2014, 2015, 2016)
Rates:
First Payment Rate will
be issued on 50% of actual production for 2018.
- Soybeans $1.65 per bushel
- Sorghum $0.86 per bushel
- Wheat $0.14 per bushel
- Corn $0.01 per bushel
- Dairy $0.12 per cwt MFP
Payment Limitation
has two separate pay limits:
-
$125,000 for crops
- $125,000 for dairy and hogs
- Does not count against pay limits established under the 2014 Farm Bill.
- Payment limits will be
calculated based on payments made directly to a "live body"
regardless of partnerships the person is involved in. Each PERSON, not
LLC, LLP, etc, will have a limit of $125K for crops and $125K for
eligible livestock.
When:
MFP Signup - September 4, 2018 to January 15, 2019.
- Signup starts Tuesday, September
4, 2018.
- Folks in the FSA office
have asked us to suggest that those looking to complete MFP paperwork for
crops only to wait until October 1st.
-
Final date to apply is
Tuesday, January 15, 2019
How:
Producers will have multiple options to complete the necessary paperwork.
- In person
- By mail (must be
postmarked by January 15, 2019)
- Electronically: The
CCC-910 Application is available to the public at http://www.farmers.gov/MFP
-
Every effort should be
made to utilize the MFP application portal available at www.farmers.gov/MFP
to apply for MFP benefits and to report production.
- Fax, scan, or emailed
Only one application per
producer is needed for all commodities and livestock.
- Part C completed after
harvest.
- Part D must be signed
before January 15, 2019.
- Producers do NOT
have to supply production evidence or request measurement service when
filing an application, but do need to inform county office what type of
evidence they have.
- County offices will
perform a certain number of spot checks so producers will need to provide
evidence if requested.
For the full USDA press release click HERE.
Frequently asked questions regarding beef's position within this package:
Question: Why isn't beef
on the list to receive a payment?
Answer: Beef exports,
despite tariff levels, have not seen the direct and immediate negative
market impact that other crops and livestock have in 2018.
In fact, beef
exports are near record levels.
Beef
export value averaged $313.56 per head of fed slaughter in June, up 19
percent from a year ago. The first-half average was $316.94 per head, up
18 percent.
Strong June results
capped a huge first half of 2018 for U.S. beef exports, according to data
released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef muscle cut exports set a new volume record in June of 90,745 metric
tons (mt), up 15 percent from a year ago. When adding variety meat, total
beef export volume was 115,718 mt, up 6 percent, valued at $718.4 million
– up 19 percent year-over-year and only slightly below the record total
($722.1 million) reached in May. First-half exports set a record pace in
both volume and value as international customers bought a larger share of
U.S. beef production at higher prices, indicating strong demand. Export
volume was up 9 percent from a year ago to 662,875 mt while export value
was just over $4 billion, up 21 percent. In previous years, export value
never topped the $4 billion mark before August.
Question: Won't the
stall in pork exports cause an increased inventory of protein and
negatively impact beef prices.
Answer: One aspect of the MFP is the Food
Purchase and Distribution Program. This purchase will
help offset the unexpected surplus of affected commodities, like beef. The
package includes $1.2 billion USDA purchases of commodities, $15 million
of that to purchase beef.
Question: Will I qualify
for an MFP payment if I harvest my corn for silage?
Answer: Depends… The MFP payments will be based on how
you certified your acres, regardless on how you actually harvest
them. Example: If you certified 100% of your corn acres as grain,
then all of your eligible corn crop qualifies for an MFP payment, even if
a portion is harvested for silage. If you certified 50% of your corn
acres for grain and 50% of your corn aces as silage, then only 50% of your
eligible corn crop qualifies for an MFP payment.
Question: What is the Trade
Promotion Program?
Answer: The Trade Promotion
Program will work to restore lost markets develop new export markets
for our nation’s farm products. This portion of MFP is where I see beef
getting the most benefit. Groups like the US Meat Export Federation are
great at working with foreign markets and this additional pool of funds
will help their efforts. $200
million will go for market promotion efforts through ATP.
The
Agricultural Trade Promotion Program (ATP) will help U.S.
agricultural exporters develop new markets and will help
mitigate the adverse effects of other countries’ tariff and non-tariff
barriers. The ATP provides cost-share assistance to eligible U.S.
organizations for activities such as consumer advertising, public
relations, point-of-sale demonstrations, participation in trade fairs and
exhibits, market research, and technical assistance.
