Farmers Can Apply For New Payments Due To Trade Disputes

27 Juillet, 2019, 00:00 | Auteur: Anatole Charbonneau
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These rates were calculated based on the estimated impact of each county's "unjustified trade retaliation". The payments will total $14.5 billion. Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) will assist agricultural producers while President Trump works to address long-standing market access barriers. It will be funded with $1.4 billion.

Agriculture is one sector of the economy to obtain trade payments. This program will be funded with $100 million.

Signup for MFP at your local FSA office starts Monday, July 29 and runs through December 6.

He noted that a farmer in a county in which wheat, which was not so affected by the trade conflicts, was the major crop but who planted cotton would find out that his payments would be lower than a farmer in a nearby county in which cotton was the major crop. The USDA will assess market conditions before releasing the remaining assistance, he said.

The structure of the payment process is similar to last year, but this year USDA will split the payments into up to three tranches, as opposed to the two tranches last year. The first payment will be made in mid-to-late August. Additional payments are scheduled for November and January but will depend on whether trade disputes are still ongoing.

In 2018, payout to individual farmers hurt by the trade war with China was capped at $125,000; this time it has been raised to $250,000 per person or legal entity, with a cap of $500,000 across three categories - for those who produce soy as well as vegetables and pigs. As with any farm program, there are eligibility restrictions. If they have an AGI above that level, they must derive at least 75% of their AGI from farming or ranching. The new aid package, announced in May, is on top of the 12 billion dollars that the US government offered previous year to help farmers weather the fallout. Five counties in Alabama and three in MS were allotted the maximum $150 payment out of a total of 22 counties total nationwide that were allotted the maximum rate. USDA has placed a cap on a producer's total payment-eligible plantings and they can not exceed total 2018 plantings for that producer.

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USA farmers, a key Trump constituency, have been among the hardest hit in the trade spat between the world's two largest economies that has continued for more than a year. Payments will vary from a minimum of $15 an acre to a most of $150 an acre for row crops, mentioned USDA officials on Thursday.

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Dairy farmers who raise crops - and all crop producers - will also be eligible for MFP payments. Money will also go to soybean fields, hog barns, dairy farms, cranberry bogs and other agricultural operations. Figure 3 shows the payment rates for the products. Hog producers will receive a payment based on the number of live hogs that were owned on a specific day, to be selected by the producer, between April 1and May 15.

Payments are based on similar damage criteria as a first round and are created to avoid distorting planting decisions.

Those per-acre payments are not dependent on which of those crops are planted in 2019.


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