Editor’s Note: Tony Nye this week is sharing the following information that has been provided by Ben Brown, Assistant Professor of Professional Practice-Agricultural Risk Management at The Ohio State University College of Food, Agricultural & Environmental Sciences.
The U.S. Department of Agriculture released details Thursday about the 2019 Market Facilitation Program (MFP). This is a continuation of the 2018 program designed to help offset market affects from retaliatory tariffs on U.S. agricultural products.
Key differences in 2019 compared to 2018
1. Payments are based on planted acres not per bushel
2. Each county has a different payment rate See the attached document (The first payment is 50% of this amount)
3. Payment is split into three parts not two. 50% in the first round, 25% in the second and 25% in the third. Only the first round is guaranteed at this point.
4. In 2018- adjusted gross income limit was set at $900,000. In 2019 — AGI higher than $900,000 is eligible as long as 75% of the income comes from the farming operation. Producer hampered by this restriction in 2018 can retroactively file for 2018 when they sign up in 2019.
Here are the important takeaways so far:
1. Sign-up will begin Monday, July 29 and run through Dec. 6. (Producers need to fill out form CCC-913 from the FSA office)
2. Crops and livestock eligible include:
a. Non-specialty — alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton and wheat. (the sum of acres of these crops not exceeding 2018 acreage multiplied by 50% of attached county rates)
b. Specialty crops — almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts (multiplied by national or state payment rates per acre)
c. Livestock- dairy and hogs. (Milk- $0.20/ hundredweight of milk registered through the Dairy Margin Coverage Program x 50%, Hogs- $11 per head of an inventory selected by the producer between April 1 and May 15, 2019 x 50%)
d. Approved cover crops on prevented planting acres will receive $15 per acre as long as long as they are planted before Aug. 1, 2019 x 50%.
All payments for the first tranche are 50% of the total payment rate and expected to be made in August.
More information is available at https://www.farmers.gov/manage/mfp
Tony Nye is the state coordinator for the Ohio State University Extension Small Farm Program and has been an OSU Extension Educator for agriculture and natural resources for over 30 years, currently serving Clinton County and the Miami Valley EERA.