Final round of trade payments on their way

The third and final round of U.S. Department of Agriculture 2019 Market Facilitation Program payments to assist growers suffering from trade retaliation by China and other countries are on their way.

Agriculture Secretary Sonny Perdue in a news release that while the signings of the USMCA and the phase one deal with China represent good news, he acknowledged that 2019 was a “tough year” for farmers because of trade retaliation from China. 

President Trump last year authorized the USDA to provide up to $16 billion in programs help growers, which Perdue said is “in line” with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The trade assistance has been distributed with an initial payment of about 50% of the expected payment, followed by the second and third payments accounting for the remainder of the expected payment.

The Market Facilitation Program for 2019, authorized under the Commodity Credit Corporation, is providing approximately $14.5 billion in direct payments to producers.

Though primarily focused on non-specialty crops corn, soybeans and rice, direct MFP payments also have been made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts, according to the USDA. In total, each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, according to the agency.  MFP payments are limited to a combined $250,000 for specialty crop producers, according to the USDA.

B.J. Thurlby, president of Northwest Cherries, Yakima, Wash.said that the assistance is a relatively small amount of money per pound of fresh cherries. However, he said the assistance has helped growers partially offset a couple of years without full access to China’s market.

In addition to direct payments, the USDA said CCC Charter Act authority is being used to implement a $1.4 billion Food Purchase and Distribution Program through the Agricultural Marketing Service to purchase surplus commodities affected by trade retaliation such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk for distribution by the Food and Nutrition Service o food banks, schools, and other outlets serving low-income individuals. The USDA’s list of purchases through the program is available online.

CCC also has used its Charter Act authority for $100 million to be issued through the Agricultural Trade Promotion Program administered by the Foreign Agriculture Service to assist in developing new export markets on behalf of producers. A list of the funding allocation in the Agricultural Trade Promotion Program is available online.

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