Detail

United States of America

Oilseeds, oils and meals

Grains, oilseeds

01/05/2019

Production

Production support (trade mitigation measures)

Announced, for the second year in succession, an aid package for farmers affected by market disruptions due to tariffs imposed by trading partners. The package would consist of a Market Facilitation Program (providing cash payments to eligible farmers) and would be complemented by a Food Purchase and Distribution Program (tasked with purchasing surplus commodities for distribution through existing social assistance schemes), and an Agricultural Trade Promotion Program (to promote the development of new export markets on behalf of producers).

In May, USDA announced a USD 16 billion aid package for farmers affected by market disruptions due to tariffs imposed by trading partners. The measure, which resembles a package introduced last year for 2018 crops (see MPPU Aug./Oct.’18), includes: i) a \'Market Facilitation Program (MFP)\' that will provide USD 14.5 billion in direct payments to affected farmers; ii) a USD 1.4 billion \'Food Purchase and Distribution Program\' earmarked to purchase surplus commodities for distribution through existing social assistance schemes; and iii) USD 100 million for a \'Agricultural Trade Promotion Program\' to assist in the development of new export markets on behalf of producers. As opposed to last year’s package, MFP payments for 2019 crops would be provided on a per acre basis (i.e. irrespective of the type of crop planted), so as not to influence planting decisions. Regarding last year’s package, USDA informed that MFP payments to producers totalled USD 8.57 billion as of 7 June 2019.