Undersecretary Bill Northey Outlines Payment Process Through USDA's Market Facilitation ProgramMon, 27 Aug 2018 15:27:12 CDT
Today, U.S. Secretary of Agriculture Sonny Perdue was joined by Undersecretary Bill Northey during an off-camera briefing to announce USDA’s specific plans to assist farmers in response to trade damage from unjustified retaliation by foreign nations. Perdue announced that Northey, who oversees the USDA’s Farm Service Agency, would be tasked with implementing a Market Facilitation Program (MFP) to provide payments to corn, cotton, dairy, hog, sorghum, soybean, and wheat producers affected by the unjustified and illegal tariffs on US agricultural goods.
Beginning September 4th of this year, MFP applications will be available online at www.farmers.gov/mfp. Interested producers can apply after harvest is 100 percent complete and they can report their total 2018 production in person, by email, fax, or by mail. Applicants must meet USDA’s eligibility requirements to be considered for reimbursement. The first MFP payment periods will begin on September 4th, 2018 with the possibility of a second payment period if USDA deems it necessary. You can listen to Undersecretary Bill Northey explain the process of how these payments will be calculated and distributed by clicking or tapping the LISTEN BAR below at the bottom of the page.
The initial MFP payment will be calculated by multiplying 50 percent of the producer’s total 2018 actual production by the applicable MFP rate. If a second MFP payment period is approved, the remaining 50 percent of the producer’s total 2018 actual production will be subject to the second MFP payment rate. The USDA has provided a breakdown of those repayment rates, as follows:
Soybeans: $1.65 a bushel.
Sorghum: 86 cents
Wheat: 14 cents
Corn: 1 cent
Cotton: 6 cents a pound
Eligibility: AGI under $900,000; in conservation compliance. $125,000 payment cap (separate from ARC/PLC cap.)
FOR pork- pigs on the farm as of August 1- payment will be based on $8 per pig For Dairy- 12 cents per hundred weight of milk.
The first phase of payments has been allocated a total $4.7 billion and breaks out as detailed below:
Soybeans $3.6 billion
Cotton $277 Million
Pork $290 Million
Dairy $127 Million
Sorghum $156 Million
Wheat $119 Million
Corn $97 Million
MFP payments are also capped per person or legal entity at a combined $125,000 for corn, cotton, sorghum, soybeans and wheat.
For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.
Source - USDA
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