Second Tranche of MFP Payments Unleashed to Farmers

WASHINGTON, DC – As a result of trade disruptions, President Trump and Agriculture Secretary Sonny Perdue have been assisting the agriculture industry to the tune of up to $14.5 billion. The Market Facilitation Program (MFP) is now in its second year and this year alone has paid more than $9 billion to farmers and ranchers injured by retaliatory tariffs. USDA is launching another round of trade aid this week, aiming to deliver an additional $3.6 billion to producers as the second tranche of the 2019 program. USDA has provided $9.1 billion to nearly 564,000 producers for this year, on top of $8.6 billion paid to more than 1 million farmers who suffered tariff damages in 2018. The third tranche of payments, delivering an additional $3.6 billion, is likely in January, although not officially authorized. Any producer in a county with a county-average payment rate of $15 per acre will not receive a second or third round of payments. The American Farm Bureau Federation explains that while up to $14.5 billion will be delivered to help agricultural producers offset losses, little of this support will likely remain on the farm. With a projected $416 billion in farm debt, bankruptcies rising and loan repayment terms increasing, a large portion of the trade assistance dollars will be used to meet immediate financial needs, paying down debt and paying creditors.