U.S. ANNOUNCES $16-BILLION AID PACKAGE FOR FARMERS

on July 19 | in Ag News | by | with Comments Off on U.S. ANNOUNCES $16-BILLION AID PACKAGE FOR FARMERS

The Trump administration is providing up to $16 billion to help U.S. farmers cope with the effects of retaliatory trade tariffs imposed by China and other countries.

Under the plan announced on May 23, the Market Facilitation Program will send $14.5 billion in direct payments to producers of more than 25 crops, including corn, soybeans, wheat and canola.

According to the United States Department of Agriculture, the payment will be based on a single county rate multiplied by a farm’s total plantings to those crops in aggregate in 2019. 

Those per acre payments are not dependent on which of those crops are planted in 2019, and therefore will not distort planting decisions, according to the USDA. Moreover, total payment-eligible plantings cannot exceed total 2018 plantings.

Dairy producers will receive a per hundredweight payment on production history and hog producers will receive a payment based on hog and pig inventory for a later-specified time frame.

Also, $1.4 billion will be used 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 to food banks, schools, and other outlets serving low-income individuals.

Another $100 million will be issued through the Agricultural Trade Promotion Program administered to assist in developing new export markets on behalf of producers.

(Source: USDA news release)

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