USDA has announced new details about its $14.5 billion Market Facilitation Program (MFP). One of the most important details for grain producers – payments will be based on your county crop history, not on the crop you grow.
In parts of our four-state territory, growers will receive more than $50 an acre in MFP payments. The map below, developed by the consulting company Agricultural Economic Insights (aei), shows MFP payments will range from $15/ to $150/acre, with the highest payments expected in the Delta and cotton areas of other states.
Signup for 2019 MFP payments begins July 29 and runs through December 6. Producers are expected to receive a payment this summer. Experts say there could be three installments of 2019 MFP payments, with the first being the largest – but they also caution that the number of payments and their scheduling remains unknown.
Payment caps will apply. For example, in Iowa’s Boone and Dallas counties, where the county payment rate is $65/acre, farmers top out at 3,850 acres of nonspecialty crops, according to FCSAmerica’s Derek Mohr, a financial officer based in Perry, Iowa.
MFP payments for livestock include milk, 20¢/cwt., and hogs, $11/head based on inventory. The payment calculation period for livestock has not been announced. Visit Farmers.gov for full details about MFP.
FCSAmerica hosted a live webinar on July 25 featuring aei economists Brent Gloy and David Widmar discussing MFP payments and their impact on farm budgets. Watch fcsamerica.com for a recording of the webinar.