Second round of trade aid may be on its way soon

The U.S. Department of Agriculture recently signaled that another round of trade bailout money will be available to farmers in late November or early December. The first round of Market Facilitation Program payments this year authorized up to $14.5 billion in direct payments to farmers hurt by the trade war. The USDA has sent out about $6.8 billion so far, economist John Newton reports for Feed & Grain.

"The second round of trade assistance provided direct payments to growers based on planted acres (2018’s assistance was based on actual production with commodity-specific payment rates). For non-specialty crops, payments were announced at the county-level and ranged from a low of $15 per acre to a high of $150 per acre," Newton reports. "Cover crops planted on acres prevented from being planted were also eligible for an MFP payment of $15 per acre, in addition to top-up payments on prevent-plant indemnities."

County-level payment rates for the second round of MFP payments, remaining dollars for rounds two and three.
(American Farm Bureau Federation map; click on the image to enlarge it.)

"Importantly, while up to $14.5 billion will be delivered to help agricultural producers offset losses due to multiple years of unfair retaliatory tariffs, little of this support will likely remain on the farm," Newton reports. "With a projected $416 billion in farm debt, bankruptcies rising and loan repayment terms increasing, a large portion of the trade assistance dollars will probably be used to meet immediate financial needs, paying down debt and paying creditors."