2018 USDA, FSA Tariff Aid Program Details Begin to Emerge

If you have missed the most recent press release for this highly anticipated farm aid initiative, see  "USDA Announces Details of Assistance for Farmers Impacted by Unjustified Retaliation".

A direct quote from the above referenced program announcement is "USDA's Farm Service Agency (FSA) will administer the Market Facilitation Program (MFP) to provide payments to corn, cotton, dairy, hog, sorghum, soybean, and wheat producers starting September 4, 2018. An announcement about further payments will be made in the coming months, if warranted."

Given what seems a relatively rapid deployment to me, our county FSA staff will soon be deeply involved in a Tariff Aid Program publicly announced late, August 27, 2018.

I expect some details and/or sources of error remain unknown around how the entire package will be fully implemented. I have not had much discussion on longer-term impacts for our farm and food system.

The following is accurate as far as monies anticipated to be distributed to 'commodity' producers of record with FSA and adhering to applicable 'highly erodible land' regulations. The amounts noted here are referred to as the 'MFP payment rate'.

Initial payment is calculated by dividing total 2018 actual production in half then multiplying this result by the appropriate payment rate (table above). If a second MFP payment period is announced, the remaining half of the total 2018 actual production will then have a payment rate.

Payments are capped per person or legal entity at a combined $125,000. Payment for dairy production is based off the historical production reported for the Margin Protection Program for Dairy (MPP-Dairy). Dairy operations are also required to have been in operation on June 1, 2018 to be eligible for payments. Payment for hog operations will be based off the total number of head of live hogs owned on August 1, 2018.

All misstatements in this brief overview are unintended. As usual, the best insight on this newest public policy is available from the people responsible. The most current information on MFP is readily accessible at the USDA Trrade Retaliation Mitigation website or contact your local FSA office, which can be found at the USDA Farmers.gov webpage.