On July 25, 2019, USDA announced more details of the Market Facilitation Program (MFP), a $16 billion-dollar package created to assist producers whose commodities have been directly impacted by tariffs.
Applications for the program began July 29, 2019 and will continue until December 6, 2019.
Which Commodities are Covered?
There are 3 different categories of eligible commodities: non-specialty crops, specialty crops and dairy/hogs.
Non-Specialty Crops include: alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat.
Specialty Crops: include almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts.
Dairy and Hogs simply include all dairy and hogs.
Who Is Eligible?
To be eligible for payments, you must have covered commodities and
- Have an average adjusted gross income for tax years 2014, 2015 and 2016 of less than $900,000; or
- Derive at least 75% of your adjusted gross income from farming/ranching;
Producers must also:
- Comply with the Highly Erodible Land and Wetlands Conservation regulations; and
- Have a farm number with the FSA
What are the Payment Details for Non-Specialty Crops?
For all non-specialty crops, payments will be calculated as follows:
MFP Payment = 2019 MFP eligible planted crops X County Payment Rate
The total 2019 MFP eligible planted acres cannot exceed the number of acres planted in 2018 by the producer. Payments range from $15/acre to $150/acre depending on the impact of the tariffs on that county. Click here for 2019 MFP County rates.
If you filed a prevent plant claim and planted an MFP-eligible crop for harvest or for subsequent forage, you will qualify for a payment equal to $15/acre. Cover crops must be planted by August 1, 2019 to be eligible for payments.
What are the Payment Details for Specialty Crops?
For all specialty crops, the payments will be calculated as follows:
MFP Payment = 2019 MFP eligible planted crops X MFP Payment Rate
Only acreage with fruit or nut bearing plants are eligible under MFP. Payments are based on the 2019 planted acres. The rates are as follows:
- Nuts: $146 per acre
- Cranberries: $.03 per pound at 21,371 pounds per acre
- Ginseng: $2.85 per pound at 2,000 pounds per acre
- Sweet cherries (fresh): $0.17 per pound at 9,148 pounds per acre
- Table grapes: $0.03 per pound at 20,820 pounds per acre
What are the Payment Details for Dairy and Hogs?
Dairy producers who were in business as of June 1, 2019 will receive a payment equal to $.20 per hundredweight payment based on the historical production reported for the Dairy Margin Coverage (DMC) Program.
Hog producers will receive a $11/head payment based on the number of head of live hogs owned on a day selected by the producer between April 1, 2019 and May 15, 2019.
What is the Timeline for Payments?
Payments will be issued in up to 3 tranches, with the 2nd and 3rd tranches evaluated for payment as market conditions and trade opportunities warrant.
The first payment will be in mid to late August and will be the greater of:
- 50% of a producer’s calculated payment; or
If the CCC determines additional payments are warranted, the second payment will be in November, 2019 and will be equal to 75% of the total calculated payment minus the first payment.
If the CCC determines additional payments are warranted, the third payment will be in January, 2020 and will be for the remaining total calculated payment.
What are the Payment Limitations?
There are three separate payment limitations for each person/legal entity as follows:
- $250,000 for non-specialty crops
- $250,000 for specialty crops
- $250,000 for hogs and milk
No person or legal entity, however, is eligible for more than $500,000 under this program.
For more details on the program or to sign up you can visit the UDSA’s website at: https://www.farmers.gov/manage/mfp.