Statewide Iowa — Details have been released regarding the aid that President Trump promised to farmers caught in the middle of a trade war.
The USDA launched the trade mitigation package aimed at assisting farmers suffering from damage due to trade retaliation by foreign nations. Producers of certain commodities can now sign up for the Market Facilitation Program or “MFP.”
The USDA says the Farm Service Agency (FSA) will administer MFP to provide payments to corn, cotton, dairy, hog, sorghum, soybean, wheat, shelled almond, and fresh sweet cherry producers. They tell us that an announcement about further payments will be made in the coming months if warranted.
The sign-up period for MFP runs through January 15, 2019, with information and instructions provided at www.farmers.gov/mfp. Officials say that MFP provides payments to producers of eligible commodities who have been significantly impacted by actions of foreign governments resulting in the loss of traditional exports. Eligible producers should apply after harvest is complete, as payments will only be issued once production is reported.
A payment will be issued on 50 percent of the producer’s total production, multiplied by the MFP rate for a specific commodity. A second payment period, if warranted, will be determined by the USDA.
For a list of initial MFP payments rates, view the MFP Fact Sheet.
MFP payments are capped per person or legal entity as follows:
A combined $125,000 for eligible crop commodities
A combined $125,000 for dairy production and hogs
A combined $125,000 for fresh sweet cherries and almonds
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.
The USDA has also expanded the timeline for producers with whom the August 1st, 2018, date does not accurately represent the number of head of live hogs they own. Producers may now choose any date between July 15 to August 15, 2018 that correctly reflects their actual operation.
MFP applications are available online at www.farmers.gov/mfp. Applications can be completed at a local FSA office or submitted electronically either by scanning, emailing, or faxing. To locate or contact your local FSA office, visit www.farmers.gov.
The FSA is also reminding producers that Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) are available to help producers through periods of low market prices. The 2014 Farm Bill authorized MALs and LDPs for the 2014 to 2018 crop years.
MALs provide interim financing and allow producers to delay the sale of the commodity at harvest-time lows and wait until more favorable market conditions emerge. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available.
For more information on these programs, farmers can contact their county FSA office.
