RUNDOWN ON TRADE AID PACKAGE DETAILS
The so-called trade aid package, formally known as the Market Facilitation Program, kicked off on September 4. Here are some details you might find useful, should you decide to participate in the program.
- USDA/FSA announced the start of the Market Facilitation Program (MFP) signup effective September 4th and ending January 15, 2019.
- FSA officials are indicating to producers and commodity groups that there is “no hurry to get into FSA to sign-up for the MFP program”. The same MFP funds will be available whether a producer applies in September or makes application by the deadline of January 15th, 2019.
- Crops eligible for MFP payment are soybeans, wheat, corn, grain sorghum, and cotton. Hogs and dairy are eligible livestock.
- FSA asks producers to accurately gather their 2018 harvested production for the applicable crops for MFP crops for which application will be filed.
- FSA has determined that RMA records are acceptable records for the program.
- Producers should ensure that the harvested production data provided to FSA matches what is provided to RMA.
- Production evidence will be certified on the CCC-910 and does not need to be provided to FSA, unless requested by COC or required due to spot check.
- The FSA COC will likely set a “yield reasonability level” in each county. This means that if a producer certifies to a yield over the COC set yield that the producer will be required to prove-up the yield to the satisfaction of the COC. (This same policy was used during the LDP program payment days of the late 1990’s and early 2000’s.)
- FSA has access to each producer’s RMA yield and production data from previous years and will have access again to 2018 RMA yields in the spring of 2019.
- The CCC-910 form will be used to capture “total crop production from all acres the farmer has an interest in”.
- The CCC-910 is available on-line at “Farmers.Gov”.
- The CCC-910 is filed by the producer with a share interest and not by FSA farm.
- If a producer farms in two or more counties they will file the MFP application in their control county.
- The CCC-910 can be filled out at the FSA office or at home and emailed or faxed or mailed into FSA.
- The CCC-910 can be completed for one crop or multiple crops on the same form; the form can be submitted for wheat today; soybeans later and corn even later.
- FSA encourages all producers to register for a Level 2 eAuthorization to allow them to complete the application through a cell phone or mobile device.
- Payments will be issued after the CCC-910 has been filed for the crop or crops and after the County Committee reviews the certification and yields for reasonableness.
- Payment rates have been determined by USDA as follows: Soybeans $1.65/bu; Wheat 14 cents/bu; Corn 1 cents/bu; Grain Sorghum 86 cents/bu; Cotton 6 cents/lbs.
- Sequestration or payment reduction due to sequestration does not apply to MFP.
- Payment factors are not expected, however maybe considered.
- Payments will be made on 50% of the crop production prior to December. These funds are guaranteed.
- In early December USDA will review the payment rates and trade status at that time and make a new determination of final payment rate.
- After the December review, USDA will decide if they will adjust payment rates and/or pay 100% of the bushels harvested.
- Payment eligibility forms - producers participating in 2018 ARC/PLC or CRP programs who have filed all required “payment eligibility forms” are good to go.
- New producers to FSA, for example, hog or dairy farmers, are advised to complete their eligibility forms as soon as possible to be eligible for payment.
- Corn, Soy, Wheat, Sorghum acreage is eligible if the acreage was reported to FSA with an intended use of “grain”.
- For example – corn intended for grain is eligible; corn intended for silage is not eligible.
- Crops reported for an intended use of grain that are harvested for a use other than grain are eligible for MFP payment. FSA will adjust the silage or hayed production by an applicable bushel or lbs factor.
- Corn and soybean acreage reported with intended for seed are eligible for payment
- All Cotton acreage is eligible for payment.
- Crop acreage that is disaster affected will receive payment on only the bushels/lbs harvested; disaster affected acreage with no production will receive no payment.
Contact your local FSA office for additional details.