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Expert Details USDA Trade Assistance Program

The U.S. Department of Agriculture (USDA) has announced the details of assistance to farmers due to increased trade tariffs.

Administered by multiple departments under the USDA umbrella, these programs are designed to assist agricultural producers to help recover some of the costs of disrupted markets, explained Jack Davis, SDSU Extension Crops Business Management Field Specialist.

Below he outlines the basics, as provided by the USDA in August 27, 2018.

  • USDA’s Farm Service Agency (FSA) will administer the Market Facilitation Program (MFP). This program is designed to provide payments to corn, cotton, dairy, hog, sorghum, soybean and wheat producers.
    Applications for the Market Facilitation Program will be made available September 4, 2018. However, agriculture producers cannot apply until harvest 2018 is complete.
    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 targeted by tariffs.
    USDA’s Food and Nutrition Service (FNS) will distribute these commodities through nutrition assistance programs such as The Emergency Food Assistance Program (TEFAP) 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.

Apply after harvest 2018
Interested producers can apply for programs that apply to their operation after harvest is 100 percent complete. Agriculture producers need to be able to report their total 2018 production.

To apply for the Market Facilitation Program, visit www.farmers.gov/mfp beginning September 4.

Producers will be able to submit their MFP applications in person, by email, fax or by mail.

The Market Facilitation Program is established under the statutory authority of the Commodity Credit Corporation (CCC) and administered by FSA.

For each commodity covered, the payment rate will be dependent upon the severity of the trade disruption and the period of adjustment to new trade patterns, based on each producer’s actual production.

For more information, visit www.usda.gov or contact Davis with questions, jack.davis@sdstate.edu.

Source: South Dakota State University 

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