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Farmers anticiapte second round of trade deal payment details

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After Trump’s Saturday night dinner announcement, many farmers are wondering where this leaves the second round of the Market Facilitation Program. American Farm Bureau Federation says the USDA is expected to soon announce the details of a second round of assistance for soybean, wheat, sorghum, cotton, dairy, and pork farmers hurt by upheaval in foreign markets.

The most damaging of the trade disruptions are steep tariffs put in place by China on many U.S. agricultural goods as China and the U.S. go tariff-for-tariff in a trade war. With aggregate agricultural exports to China falling more than 65 percent year-over-year in August 2018, the list of U.S. commodities under pressure is long. For example, total dairy and pork product exports to China have fallen by nearly half in recent months, while soybean exports were down 97 percent in the first two months of the new marketing year.

In the run-up to USDA’s announcement that it had decided to move forward with the second — and final — round of MFP payments, Farm Bureau urged the department not to eliminate or reduce the trade aid.

“Instead, we propose you both evaluate the ongoing trade damages and reconsider the great need for more Market Facilitation Program payments to be delivered expeditiously to farmers and ranchers. With debt at record levels, operating loans increasing substantially, and debt-to-asset ratios climbing even more, financial support is needed across agriculture,” Duvall emphasized in the letter.

The Market Facilitation Program payments are part of the White House’s trade mitigation efforts. The administration has also pledged to purchase up to $1.2 billion in commodities unfairly targeted by unjustified retaliation. USDA’s Food and Nutrition Service will distribute these commodities through nutrition assistance programs. In addition, $200 million will be made available through the Foreign Agricultural Service’s Agricultural Trade Promotion Program to develop foreign markets for U.S. agricultural products. More news is expected to come later this week as to the degree of payments. 

Any views or opinions expressed in this article are those of the author and do not reflect those of AGDAILY. Comments on this article reflect the sole opinions of their writers.
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