Detail

United States of America

Oilseeds, oils and meals

Selected crops, biodiesel

01/03/2020

Production

Agricultural relief measures, biofuel policy

From March 2020 to May 2020: Announced a relief programme to help US farmers cope with the impact of the COVID-19 pandemic. The programme would target farmers who have suffered a 5 percent or greater price decline due to COVID-19 and who faced additional significant marketing costs as a result of lower demand, surplus production and disruptions to marketing or shipping patterns. The package would include payouts to producers of selected row crops, including soybeans, rapeseed and sunflower seed. Affected farmers would also be provided with access to more flexible federal loans. Moreover, ethanol and biodiesel producers impacted by reduced energy demand due to nationwide lockdowns would benefit from a recently launched programme aimed at expanding the availability and sale of renewable fuels (see above).

UNITED STATES OF AMERICA – farmer assistance, biofuel support (COVID-19 related, temporary measures): On 20 April, the Government announced a relief programme worth USD 19 billion to help U.S. farmers cope with the impact of coronavirus. The programme targets farmers who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production and disruptions to shipping patterns and the orderly marketing of commodities. The package includes USD 3.9 billion for pay-outs to producers of selected row crops, including soybeans, rapeseed and sunflowerseed. On 19 May, USDA informed that producers would receive a single payment based on 50 percent of a producer’s 2019 total production or on unsold inventory as of 15 January 2020, whichever is smaller. For soybeans, rapeseed and sunflower, the applicable payment rates would be, respectively, USD 0.45–0.50 per bushel, USD 0.01 per pound and USD 0.02 per pound. A payment limitation of USD 250 000 per person or entity will apply, for all commodities combined. Furthermore, farmers financially hurt by the COVID-19 epidemic will also be provided access to more flexible federal loans. Moreover, with regard to biofuels, USDA announced plans to make available up to USD 100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels. The measure is expected to benefit ethanol and biodiesel producers that have been affected by decreased energy demand due to nationwide lockdowns.