The third and final tranche of 2019 Market Facilitation Payments was announced by the U.S. Department of Agriculture (USDA) and U.S. President Donald Trump this week.

“It’s been a great start to 2020 for American agriculture with the signing of the historic phase one deal with China and the signing of USMCA,” U.S. Secretary of Agriculture Sonny Perdue said in a statement. “While these agreements are welcome news, we must not forget that 2019 was a tough year for farmers as they were the tip of the spear when it came to unfair trade retaliation. President Trump has shown time and again that he is fighting for America’s farmers and ranchers and this third tranche of 2019 MFP payments is proof.”

MFP payments aim to assist farmers suffering from damage due to unjustified trade retaliation by foreign nations.

“We are grateful for the administration’s recognition of the negative impacts of tariffs on agriculture, and the assistance package announced will provide temporary relief for the unjustified retaliatory tariffs Texas farmers have dealt with,” Texas Farm Bureau President Russell Boening said.

But Texas farmers and ranchers, Boening noted, have faced difficult decisions amid weather challenges, low commodity prices, trade disputes and tariffs.

“Farmers and ranchers are grateful for the mitigation payments to help keep their businesses going, but it is important to note that these payments do not make them whole,” Boening said. “We appreciate efforts by the Trump administration, U.S. Department of Agriculture and U.S. Trade Representative for their work to continue trade negotiations with China, Japan and other countries. Progress in these relationships offer much hope for Texas farmers and ranchers, because farmers prefer trade not aid. It is critically important to build and restore agricultural markets and mutually beneficial relationships with our trading partners from around the world.”

Farmers should begin receiving payments by the end of the week, according to USDA.

Details on third tranche of 2019 MFP payments
Payments will be made by FSA under the authority of Commodity Credit Corporation (CCC) Charter Act to farmers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton and wheat.

MFP assistance for these non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of these crops are planted in 2019. A farmer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.

Dairy farmers who were in business as of June 1, 2019, will receive a per hundredweight payment on Dairy Margin Coverage (DMC) production history, and hog farmers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

MFP payments will also be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

Acreage of non-specialty crops and cover crops had to be planted by Aug. 1, 2019 to be considered eligible for MFP payments.

Per-acre non-specialty crop county payment rates, specialty crop payment rates, and livestock payment rates are all currently available on farmers.gov.

This is the final of three tranches of MFP payments. The first tranche was comprised of the higher of either 50 percent of a farmer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranche three. The second tranche was 25 percent of the total payment expected, in addition to the 50 percent from the first tranche.

MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog farmers and a combined $250,000 for specialty crop farmers. However, no applicant can receive more than $500,000.

Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2015, 2016 and 2017 of less than $900,000, unless at least 75 percent of the person’s or legal entity’s AGI is derived from farming, ranching or forestry related activities. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

Many farmers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Farmers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 per acre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.

In June, HR 2157, the Additional Supplemental Appropriations for Disaster Relief Act of 2019, was signed into law by Trump, requiring a change to the first round of MFP assistance provided in 2018. Farmers previously deemed ineligible for MFP in 2018 because they had an average AGI level higher than $900,000 may now be eligible for 2018 MFP benefits. Those farmers must be able to verify 75 percent or more of their average AGI was derived from farming and ranching to qualify. This supplemental MFP signup period will run parallel to the 2019 MFP signup, from July 29 through Dec. 6, 2019.

Information on MFP
MFP for 2019 was authorized under the CCC Charter Act and administered by the Farm Service Agency (FSA). MFP is providing about $14.5 billion in direct payments to farmers.

The CCC Charter Act authority is also 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. Those products include fruits, vegetables, some processed foods, beef, pork, lamb, poultry and milk. They are purchased for distribution by the Food and Nutrition Service to food banks, schools and other outlets serving low-income individuals.

In addition, another $100 million was issued through the Agricultural Trade Promotion Authority to assist in developing new export markets on behalf of farmers.

For more information on MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.