Texas Agriculture Daily

The trade mitigation package aimed at assisting farmers and ranchers suffering from damage due to unjustified trade retaliation by foreign nations has launched.

Farmers of certain commodities can now sign up for the Market Facilitation Program (MFP), while the U.S. Department of Agriculture (USDA) will also begin to purchase identified commodities under a food purchase and distribution program. USDA has also begun accepting proposals for the Agricultural Trade Promotion Program (ATP), which will help American farmers find and access new markets for their products.

In total, USDA will authorize up to $12 billion in programs, consistent with World Trade Organization obligations.

U.S. Secretary of Agriculture Sonny Perdue announced in July that USDA would act to aid farmers in response to trade damage from unjustified retaliation.

President Trump directed Perdue to craft a short-term relief strategy to protect farmers and ranchers while the administration works on free, fair and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. These programs will assist farmers and ranchers to meet some of the costs of disrupted markets.

“These programs will allow President Trump time to strike long-term trade deals to benefit our entire economy, including the agricultural sector, in the long run,” Perdue said. “Farmers will tell you that they would always prefer to sell a good crop at a fair price, rather than receive government aid, and that’s what long-term trade deals will accomplish. But in the meantime, President Trump has promised that he will not allow American agriculture to bear the brunt of the unjustified retaliation from foreign nations.”

USDA provided details in August of the programs to be employed:

• 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 farmers. An announcement about further payments will be made in the coming months, if warranted.
• USDA’s Agricultural Marketing Service (AMS) will administer a food purchase and distribution program to purchase up to $1.2 billion in commodities unfairly targeted by unjustified retaliation. USDA’s Food and Nutrition Service (FNS) will distribute these commodities through nutrition assistance programs, such as the Emergency Food Assistance Program and child nutrition programs.
• Through the Foreign Agricultural Service’s (FAS) Agricultural Trade Promotion Program (ATP), $200 million will be made available to develop foreign markets for U.S. agricultural products. The program will help U.S. agricultural exporters identify and access new markets and help mitigate the adverse effects of other countries’ restrictions.

USDA is currently working to determine how to address market disruptions for farmers who grow almonds and sweet cherries.

Market Facilitation Program
The sign up period for MFP is now open and runs through Jan. 15, 2019, with information and instructions provided at www.farmers.gov/mfp.

MFP provides payments to cotton, corn, dairy, hog, sorghum, soybean and wheat farmers who have been significantly impacted by actions of foreign governments resulting in the loss of traditional exports. MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) Charter Act and is under the administration of FSA.

Eligible farmers should apply after harvest is complete, as payments will only be issued once production is reported.

A payment will be issued on 50 percent of the farmer’s total production, multiplied by the MFP rate for a specific commodity. A second payment period, if warranted, will be determined by USDA.

Market Facilitation Program