• Paul Goeringer

2nd Round of 2019 Market Facilitation Program Available to Assist Producers Due to Trade Disputes

Updated: Jul 10

By Paul Goeringer and Nerice Millet-Williams

Image of corn harvest from above on the Eastern Shore by Edwin Remsberg.

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The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) established the Market Facilitation Program (MFP) under the Commodity Credit Corporation (CCC) Charter Act. The CCC was created to support and protect farmers’ incomes, as MFP does. MFP provides direct payments to producers of specific products impacted by foreign retaliatory tariffs. These products include:

  1. Corn

  2. Cotton

  3. Wheat

  4. Sorghum

  5. Barley

  6. Dairy

  7. Hogs

  8. Beans

This assists in the expansion of domestic markets or the development of new and additional markets and uses.

USDA recently announced the second tranche of MFP payments. Producers of MFP-eligible commodities will now receive an additional 25 percent of the total payment expected in addition to the 50 percent of the total payment expected they may have already received in the first round.

Applying and receiving MFP is a simple process. First, the producer must apply using the link below. Then, three factors are assessed to determine their eligibility. They must have accurate and approved documentation of production levels to create a baseline for payment. Fees are determined based on the production level and monetary support is provided to protect farmers’ incomes.

You may apply for MFP by 12/20/2019 at www.farmers.gov/MFP

Eligibility

Producers eligible for the program must have an interest in the commodity and be actively farming. They must also comply with “Highly Erodible Land and Wetland Conservation” regulations, also known as conservation compliance provisions. The producer’s average adjusted gross income may not exceed $900,000 for 2014, 2015 and 2016.

Crops

MFP for non-specialty crops is based on a single county payment rate multiplied by the farm’s total production of eligible crops in 2019. County payment rates range from $15 to $150 per acre, depending on the county. Producers must have a crop acreage report on file with the FSA for MFP crop commodities. The acreage of non-specialty crops and cover crops must be planted by August 1, 2019, to be eligible for MFP payments.

Non-Specialty Crops include:

  1. Alfalfa Hay

  2. Corn

  3. Oats

  4. Sorghum

  5. Barley

  6. Soybeans

  7. Sunflower Seeds

  8. Wheat


Image of round hay bales in a field in Maryland. Image is by Scott Robinson

Dairy and Hog Production

Dairy production payment is based on the historical production reported for the Margin Protection Program for Dairy (MPP-Dairy). This MPP-Dairy program, like the MFP program, is an FSA risk management program for producers. MFP uses the same baseline method as MPP-Dairy to ensure accurate production levels. For existing dairy operations, the production history is established using the highest annual milk production marketed during the full calendar years of 2011, 2012, and 2013. Dairy operations must have operated on June 1, 2019, to be eligible.

Hog production payments are based on the total number of live hogs owned by the producer between April 1, 2019 – May 15, 2019. To verify this number and receive payment, production records for hogs may include:

  1. Breeding records

  2. Inventory records

  3. Sales receipts

  4. Rendering receipts

  5. Veterinary records

Other forms of proof may be accepted, but must be approved.

Payments

MFP payments are separated into three tranches (parts). The first tranche begins in mid-to-late August. The first round payment is composed of the first 50 percent of a producer’s payment or $15 per farm acre. The second tranche is now available on the remaining 25 percent of the planting. An MFP payment, based on either the initial or second payment rate, will be made after a producer harvests 100 percent of the crop and certifies the amount of planting. Acres that are not planted in 2019 are not eligible for an MFP payment.

The first round MFP payment is determined as follows:

Market Facilitation Program Rate x 50% of Total 2019 Planting = 1st tranche Payment

The second round MFP payment is determined as follows:

Market Facilitation Program Rate x 25% of Total 2019 Planting = 2nd tranche Payment

The MFP rates include:

  1. Ginseng: $2.85 per pound

  2. Cover Crop: $15.00 rate per acre

  3. Grapes: $0.03 per pound

  4. Non-specialty Crops: single county rate per-acre (shown in the table below)

  5. Dairy: $0.20 per hundredweight

  6. Hogs: $11.00 per head (as of 04/01/2019)

  7. Cranberries: $0.03 per pound

  8. Nuts: $146.00 per acre

2019 Maryland County Payment Rate Per Acre


Table of MFP 2019 Payment Rates

Payment Example

If Alex produced 150 acres of soybeans and 200 acres of corn, which are non-specialty crops, the payment will be calculated by multiplying the county rate per acre and 50% of the total planting. If Alex lived in Queen Anne’s County, the MFP payment for 150 acres of soybeans and 200 acres of corn would be calculated as $56 *(150+200)*50% or $9,800 for a total first-round payment.

For the second round, Alex’s payment would be $56*(150+200)*25% or $4,900.

Alex’s total payment would be $14,700 for both rounds of MFP.

Limitations

MFP payments are limited per person/legal entity to:

  1. A combined $250,000 for non-specialty crops producers

  2. A combined $250,000 for dairy and hog producers

  3. A combined $250,000 for specialty crop producers

No applicant can receive more than $500,000.

Where to File

The CCC-910 Market Facilitation Program application form by Friday, December 20, 2019. All applications can be found on www.farmers.gov/MFP , and completed in person at a local FSA office, submitted electronically through faxing, scanning or emailing, or mailed to your local FSA office.

Additional Resources

For more information, visit www.farmers.gov/MFP or contact your local FSA office. To find your local FSA office, visit www.farmers.gov.

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