MFP Announced this Week (with Benefits for Forage Growers)

KSFGC – On July 25th, USDA announced a few details regarding the administration’s 2019 Market Facilitation Program (MFP 2.0), and the program has definite benefits for forage growers.

MFP is the administration’s relief strategy, supporting farmers impacted by retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The $16 billion package includes $14.5 billion set aside for direct payments, $1.4 billion going to federal purchases of surplus agricultural commodities that will be distributed to food banks, and $100 million to promote exports overseas.

A change in MFP 2.0 vs. 2018’s MFP is that payment rates for the 29 non-specialty crops are based on a single county payment rate multiplied by a farm’s total 2019 plantings of MFP-eligible crops in aggregate. As a result, payments aren’t tied to the specific crops planted in 2019.

Another change that benefits forage growers is that alfalfa hay, millet and triticale were added to the list of non-specialty crops eligible for Farm Service Agency (FSA) payments, along with Title 1 commodities such corn, sorghum, soybeans, wheat, cotton, barley, oats, rice and sunflower seed. For a complete listing, go to www.farmers.gov/manage/mfp

Other details Shared Include:

  • MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.
  • MFP assistance for non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019.
  • Prevent plant acres that are planted to a qualified cover crop by August 1 will receive a $15 payment per acre planted.
  • Acreage of these non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.
  • Per-acre payments are not dependent on which of those crops are planted in 2019. The simple average per acre payment for Kansas is $52.33, with a high for Ford County at $73 and a low of $22 in Harper County.
  • A producer’s total payment-eligible plantings cannot exceed total 2018 plantings.
  • The first tranche will be comprised of the higher of either 50 percent of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August. The remaining payments (if any will) be made later in 2019 or 2020. So, for example, this first Ottawa County tranche would be $27 per non-specialty crop acre (50% of $54)
  • Dairy and Hogs
    • 20 cents per hundredweight of milk, based on production history and in business as of June 1, 2019.
    • $11 per hog based upon a date selected by the producer for hogs on hand between April 1 and May 15, 2019 (producer should select the date with the highest number)
  • Payment Limits Per Person or Legal Entity
    1. Non-specialty crops – Combined $250,000
    2. Livestock Producers (Dairy & Hogs) – Combined $250,00o
    3. Specialty crops (i.e. pecans, almonds, cherries, fresh grapes, ect.)  – Combined $250,000.
      • NO applicant can receive more than $500,000. For example, if you qualify for the $250,000 from each of Non-specialty, Livestock and Specialty categories, you’ll still only receive $500,000.
      • Lastly, there remains an average adjusted gross income (AGI) limit of $900,000 (must be less than) for tax years 2014, 2015, and 2016. UNLESS 75 percent of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 was derived from farming and ranching (then this limit does not apply).

 

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