On July 25, 2019, United States
Secretary of Agriculture Sonny Perdue announced details on a $16 billion
package aimed at supporting American agricultural producers that were impacted
by retaliatory tariffs on U.S. agricultural goods. As part of the package, the
Market Facilitation Program (MFP) will provide $14.5 billion in producer
payments under the authority of the Commodity Credit Corporation (CCC). This is
the second round of support payments to farmers by the United States Department
of Agriculture (USDA). Eligible producers may apply for program payments
through their local Farm Services Agency (FSA) offices.
The signup period for the 2019
MFP runs from July 29, 2019 through December
There are a few key changes with
this second round of MFP payments that you should be aware of:
- Payment limitation is $250k per person/legal
entity, with a total of $500k that a single person/legal entity may receive
(e.g., can receive $250k payment for hogs and $250k for specialty crops).
- Payment rate for hogs is $11 per head of live
hogs owned on a day selected by the producer between April 1 and May 15 of
2019. The producer can receive up to 50% of the calculated payment this year, which
payments will begin in mid to late August of this year. The producer must
actually own the live hogs in
order to be eligible.
- The average AGI limitation is different. A
producer must either (1) have average AGI less than $900k OR (2) verify that
75% of its average AGI comes from farming or ranching activities.
- Producers who missed out on the 2018 MFP
payments because they were over the $900k limit may apply for a supplemental
2018 MFP payment if they can verify that 75% of their average AGI comes from farming
or ranching activities. The application period will be the same as the
period for the 2019 MFP (July 29-Dec 6). This means they can apply for BOTH
supplemental 2018 MFP AND 2019 MFP. The tax years for computing average AGI
are different for the supplemental 2018 MFP. Based on the way the law is
written, average AGI for the supplemental 2018 MFP is calculated using the
2013, 2014, and 2015 tax years (rather than 2014, 2015, and 2016 for all other
2018 USDA program payments).
If you have any questions or need any additional info, please reach out to us at 501.376.9241