trade

Industry Reaction to Trade Aid Announcement

Dan Industry News Release, Trade

trade

Source: American Farm Bureau Federation

Farm Bureau Welcomes Trade Assistance, Urges Return to Open Markets

The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall:

“We greatly appreciate President Trump’s concern for America’s farmers and ranchers in these difficult economic times, and we are grateful for this continued trade assistance to help our farmers and ranchers stay in business and continue feeding our nation. We look forward to reviewing the details of this new $16 billion aid package and its specific impact on each sector of agriculture.  

“These are difficult times for agriculture, and the longer these trade wars continue, the deeper the impact on farm country. Farmers are being hit with tariffs on top of already-challenging economic conditions from severe weather events, low commodity prices, lack of available labor and a host of other impacts. It’s the perfect storm for agriculture, and these continuing trade wars are adding to the increasing financial burden on our farmers and ranchers.

“While we are grateful for the continuing support for American agriculture from President Trump and Secretary Perdue, America’s farmers ultimately want trade more than aid. It is critically important to restore agricultural markets and mutually beneficial relationships with our trading partners around the world.

“We are hopeful that trade negotiations with China will quickly lead to a resolution of trade disputes and that the administration will make important progress in negotiations with Japan and the European Union. At the moment, all eyes are on winning congressional approval for the U.S.-Mexico-Canada Agreement.”


Source: Georgia Department of Agriculture

USDA Unveils Support Package for Farmers Enduring Retaliatory Tariffs

Atlanta, GA (GDA) – USDA has announced the details of the relief package for farmers suffering losses from unjustified retaliatory tariffs.  Georgia farmers can start signing up on Monday, July 29 at their local Farm Service Agency office for the Market Facilitation Program and the Food Purchase and Distribution Program.

“Our farmers have certainly had their fair share of challenges this past year,” said Georgia Agriculture Commissioner Gary W. Black. “We are proud of Georgia’s farmers for displaying strength and resilience during this trying time and for the Administration and USDA for their efforts to assist. This substantial effort is very encouraging, and we believe that it will greatly benefit all of our Georgia producers, especially our pecan, peanut and cotton growers.”

The Market Facilitation Program will assist row crop growers based on a single county payment rate multiplied by a farm’s total plantings in 2019. County payment rates can be found at http://agr.georgia.gov/documents/Georgia-Counties-from-PaymentRates.pdf. Pecans who have been profoundly affected by the retaliatory tariffs are also available for assistance through the Market Facilitation Program with a payment of $146 per acre.

In addition to the Market Facilitation Program assistance to dairy producers with a per hundredweight payment on production history, USDA’s Food Purchase and Distribution Program will assist dairy producers by purchasing surplus milk for distribution by the Food and Nutrition Service to food banks, schools, and other outlets serving low-income individuals.

More details regarding the support package for farmers can be found at https://www.usda.gov/media/press-releases/2019/07/25/usda-announces-details-support-package-farmers.


Source: Georgia Peanut Commission

USDA releases details for second round of trade mitigation Includes support for peanut growers

TIFTON, Ga. (GPC) The U.S. Department of Agriculture (USDA) announced more details on the support package that includes $16 billion for American farmers and ranchers while the Administration continues to work on free, fair, and reciprocal trade deals.

“We are very glad to see that the hard work Secretary Perdue and his team put into developing this package will help our growers,” says Armond Morris, chairman of the Georgia Peanut Commission and farmer from Tifton, Georgia. “And, we are glad to have support from the Administration while they continue to work on these important trade deals.”

The Market Facilitation Program (MFP) for 2019, will be administered by the Farm Service Agency (FSA) and will provide $14.5 billion in direct payments to producers. The Market Facilitation Program (MFP) includes peanuts, among other non-specialty and specialty crops, as an eligible crop to receive payments from the USDA. The MFP will pay peanut producers on a county per acre payment rate. Peanut producer payments will range in Georgia from $15 to $150 an acre depending on which county the peanuts are being produced in 2019. 

As compared to last year’s round of MFP payments, this year’s program revises payment limit language for eligible producers and will allow a maximum of $500,000 to go to a single producer or legal entity across all three aspects of MFP with a $250,000 limit for a single phase of the program. The adjusted gross income (AGI) limit barring program participation if an applicant’s AGI tops $900,000 also applies, but is waived if three-fourths of that income comes from agriculture.

Market Facilitation Program payments will be made in up to three tranches. The first payment will be made in mid-to-late August with the second and third payments coming in November and January. Applications will be available beginning Monday, July 29, online at www.farmers.gov/manage/mfp.


Source: American Soybean Association

Soy Growers Appreciate Efforts to Offset Ongoing Tariff Damages

Administration Shares MFP Payment Details

Washington, D.C. (ASA) — The United States Department of Agriculture (USDA) released details this morning of the 2019 Market Facilitation Program (MFP) payments announced by the Administration in May. MPF will provide up to $14.5 billion to producers, including soybean farmers, in up to three tranches starting with a first round of payments this August.

Payment rates vary by county from $15 to $150 per acre based on USDA’s calculated damages from tariffs in each individual county affected – most in the $50 to $75 range per acre, according to USDA. That single-county rate will be multiplied by a farm’s total planted acreage for all MFP-eligible crops in aggregate for 2019, not to exceed total 2018 plantings.

Davie Stephens, president of the American Soybean Association (ASA) and soybean grower from Clinton, Kentucky, said, “The county rate for farmers in areas with a higher percentage of crops suffering from negative trade impacts will receive a higher offset for the damages we have seen because of the tariffs. We appreciate the Administration’s effort to determine how the payments will work and hope our soybean growers—no matter where their farms are and what is planted there—feel some relief from this assistance.”

ASA is glad that the Administration continues to recognize the ongoing struggle of soybean farmers caught in the middle of the trade war with China. Soybean growers were also pleased with the Agricultural Trade Promotion (ATP) funding announced by USDA last Friday, as those funds granted to the soybean industry will support new market development. Yet, ASA continues to ask for a quick and positive resolution to the current tariff on U.S. beans going to China that has disrupted the market.

Sign-up for farmers with eligible crops begins Monday, July 29, with those who are first to sign up expected to receive an initial payment equal to 50% of what they are eligible for in mid to late August. Second and third payments, each equal to 25% of the total qualifying payment, are slated for November 2019 and January 2020 contingent upon market conditions and trade opportunities. Producers can continue to sign up through December 6, 2019.

Farmers who earn 75% or more of their income from agriculture will be eligible for up to the $250,000 MFP payment limit and retroactively eligible for up to the $125,000 payment limit for the 2018 program. MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity and a combined $250,000 for hog or dairy farmers per person or legal entity; No applicant can receive more than $500,000 total.


Source: National Corn Growers Association

NCGA Welcomes Progress on MFP, Looks Forward to Improved Program

WASHINGTON (NCGA) – National Corn Growers Association (NCGA) President Lynn Chrisp today made the following statement on the U.S. Department of Agriculture’s (USDA) release of county payment rates for the Market Facilitation Program (MFP).

“It’s no secret that farmers are facing difficult decisions amid wet spring weather, trade disputes and tariffs, and demand destruction in the ethanol market. While NCGA’s focus remains markets, we welcome USDA’s quick rollout of MFP 2.0 and the Department’s creative efforts to reorient MFP to better reflect market impacts and support American farmers. We look forward to learning more about how MFP will work for corn farmers.”  

Following President Trump’s announcement that the Administration would be pursuing a second round of trade aid, NCGA put forward recommendations that would provide both short-term assistance and support market access for farmers. NCGA continues to encourage the Administration to take additional actions to open markets and provide more certainty to corn farmers, including stopping RFS waivers to big oil refiners and restoring waived ethanol gallons and resolving trade disputes and tariffs.


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Source: National Sorghum Producers

NSP Grateful To Administration For Second Market Facilitation Program

WASHINGTON, DC (NSP)—U.S. Secretary of Agriculture Sonny Perdue today announced further details of the $16 billion package to support American agriculture producers, including a second installment of the Market Facilitation Program. National Sorghum Producers Board of Directors Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, made the following statement in response:

“National Sorghum Producers appreciates support from President Trump and Secretary of Agriculture Sonny Perdue, following through a second time on their commitment to provide farmers needed relief from trade disputes.

“In times like these, sorghum farmers need all the support they can get as it has been a very tough year for farmers and ranchers across America. We are grateful the Administration has backed agriculture producers in the pursuit of fairer trade practices and long-term market solutions.

“We hope to see this program move forward in a timely manner with these payments out the door and into the hands of those who need it very soon. As trade negotiations with China continue next week, we also look forward and encourage our governments to have meaningful dialogues that lead to long-terms solutions.”

MFP payments will be made in up to three tranches with the second and third tranches evaluated as market conditions and trade opportunities dictate. MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.For more information on the MFP, visit www.farmers.gov/mfp or producers can contact their local FSA offices.


Source: National Association of Wheat Growers

NAWG Responds to USDA’s Announcement on Another Round of MFP Payments for Farmers

Washington, D.C. (NAWG) – On July 25, 2019, the U.S. Department of Agriculture (USDA) announced details of its latest $16 billion in aid to offset trade damages, including another round of market facilitation program (MFP) payments of $14.5 billion for farmers who are being impacted by the current trade war with China. Payment rates are set at a county level rather than commodity rate.

“NAWG appreciates the Administration recognizing the impact the current trade war with China is having on farmers,” stated NAWG President and Lavon, TX farmer Ben Scholz. “The MFP payments will provide necessary assistance to growers impacted by low prices resulting in part from tariffs.  However, this is a band-aid when we really need a long-term fix. NAWG understands holding China accountable for its WTO violations and unfair trade practices but a trade war is not the solution especially when farmers are the casualties.”

Prior to the release of details of MFP, NAWG sent a letter to USDA Secretary Sonny Perdue outlining concerns to be addressed in a final program. Additionally, NAWG met with the Office of Management of Budget (OMB) and USDA officials to discuss its concerns including those raised around ensuring fall 2018-seeded winter wheat would be eligible, fallow rotations, and new and beginning farmers. Specifically, NAWG asked that growers not be penalized by the limit of 2018 harvested acres since the MFP proposal uses a farmer’s 2019 planted acres capped at their 2018 harvested acres.

“We continue to urge the Administration to quickly resolve the ongoing trade dispute with China and to negotiate new trade agreements, and Congress to act quickly on USMCA.”


Source: National Pork Producers Council

NPPC Statement on Trade Aid II

WASHINGTON, D.C. (NPPC) — The U.S. Department of Agriculture today announced details of its second program providing trade retaliation relief to American farmers. Eligible U.S. pork producers will receive $11 per head based on inventory between April 1-May 15, 2019. The USDA also announced it will make pork purchases of $208 million to support its programs for the food insecure. National Pork Producers Council President David Herring, a producer from Lillington, N.C., issued the following statement:

“U.S. pork producers are highly dependent on export markets, shipping more than 25 percent of production to foreign markets. We are grateful to the Trump administration for providing partial relief as hog farmers have incurred significant losses due to trade disputes that have lingered for more than a year.

“U.S. pork is the most affordable, highest quality and safest in the world and our top objective remains the same: We seek the chance to compete on a level playing field in markets around the globe. Our top priorities are an end to the trade dispute with China, where retaliatory tariffs are preventing U.S. pork from fully capitalizing on a historic sales opportunity created by the outbreak of African swine fever in the world’s largest pork-consuming nation, and a trade agreement with Japan, where U.S. pork is losing market share due to trade agreements Japan has recently formed with the EU and other international competitors.”

USDA’s second trade retaliation relief package is valued at $16 billion, with $14.5 billion dedicated to producer payments, $1.4 billion for commodity purchases and $100 million through its Agricultural Trade Promotion Program to help U.S. farmers and ranchers identify and access new export markets. Sign up for the program begins Monday, July 29 and ends Dec. 6, 2019. For more information, visit: www.farmers.gov/manage/mfp.


Source: National Council of Farmer Cooperatives

Farmer Co-ops Applaud Announcement of Market Facilitation Program Payment Rates

Washington, D.C. (NCFC) — The National Council of Farmer Cooperatives today applauded the announcement of Market Facilitation Program payment rates by the U.S. Department of Agriculture (USDA). In late May, Secretary of Agriculture Sonny Perdue announced the MFP as part of a package designed to mitigate trade damage from unjustified retaliation and trade disruption.

“I want to commend Secretary Perdue and the entire team at USDA for their efforts to get this trade assistance in the hands of farmers and ranchers as soon as possible,” said Chuck Conner, president and CEO of NCFC. “Tariffs imposed by other countries continue to cause many in agriculture to struggle and help in any form is welcome news.”


Source: National Milk Producers Federation

NMPF Statement on USDA Trade-Mitigation Aid Announcement

ARLINGTON, Va. (NMPF) – In response to the USDA’s outline of its planned trade-mitigation assistance to farmers, NMPF President and CEO Jim Mulhern offered the following statement:

“We appreciate the efforts of USDA and the White House to assist farmers who have suffered significant losses due to retaliatory tariffs. Dairy producers have so far lost more than $2.3 billion in revenues since tariff escalation began in earnest one year ago. USDA’s new approach raises the level of aid to dairy farmers from last year’s program, a step in the right direction. We also urge the Department to revise the outdated production history information used to calculate payments, which lessens the effectiveness of the program.

“Today’s announcement underscores that dairy farmers need to rely on trade, not aid, to prosper in a global marketplace. We will continue to work with USDA to help dairy farmers expand exports and increase consumption of dairy products through nutrition programs. Resolving the current trade impasse with China and aggressively expanding ties with other trading partners also is essential to make these aid packages unnecessary. We are also working with the administration and Congress to pass USMCA, which would immediately create new opportunities for U.S. dairy.”