Following the announcement earlier this month about the Trump Administration’s increase on tariffs for Chinese goods, soybean growers were relieved to hear today’s news from the White House about the Market Facilitation Program (MFP).
According to a press release by the American Soybean Association (ASA), the 2019 MFP will provide a total of $14.5 billion in payments to producers, including soybean growers. The release notes that “payments this year will be based not on individual crops as in the past, rather on county-specific rates determined by, ‘long term distortion from tariff damage,’ according to USDA.” Additionally, “that single-county rate will be multiplied by a farm’s total planted acreage for all eligible crops to determine payment so that planting decisions are not skewed, and eligible plantings cannot exceed total 2018 plantings.” The first payments will be administered by the Farm Services Agency (FSA) in late July or early August.
This program is good news for farmers, who welcome the short-term relief from the ongoing negative effects of the U.S.-China trade war. The ASA was pleased to see the continuation of the Agricultural Trade Promotion Program (ATP) to assist in developing new export markets during this time of export and trade uncertainty, however, the organization also calls on the Administration to find a more permanent solution. The ASA continues to insist the Administration negotiate terms with China to remove the 25 percent tariff on soybeans and return the two countries to free market conditions.
Need a recap? Get caught up on the ongoing U.S.-China trade war:
- WSA President Featured on MSNBC to Speak on U.S.-China Trade War
- Increased China Tariffs Major Concern for Wisconsin Soybean Growers
- Soy Growers Say Six Months is Too Long. They Need Trade, Not Tariffs.
- Renewed Sales to China Positive News for Wisconsin Soybean Growers
- NBC Features Wisconsin Farmers’ Take on US-China Trade War
- ASA Board Member Works With Senator Ron Johnson on Tariffs
- $50 Billion Tariff Against China to Take Effect