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1 1 (August 12, 2019)

handle is hein.crs/govbasw0001 and id is 1 raw text is: , ,'Congressional Research Service Infonsn q te legislative debates sice 1914 August 12, 2019 Farm Policy: Comparison of 2018 and 2019 MFP Programs During 2018 and 2019, the U.S. Department of Agriculture (USDA) announced two rounds of trade aid valued at a combined $28 billion. USDA is using its authority under the Commodity Credit Corporation (CCC) Charter Act to establish and fund the trade aid packages. The 2018 and 2019 trade aid packages provide both direct and indirect assistance for farmers affected by trade damage from retaliatory tariffs. For information on the trade aid packages, see CRS Report R45865, Farm Policy: USDA's 2019 Trade Aid Package. The largest subsidy program under both the 2018 and 2019 trade aid packages is the Market Facilitation Program (MFP), which provide direct payments to producers of trade damaged commodities, valued at a combined $24.5 billion (Table 1). The MFP outlays are in addition to USDA's traditional farm support programs (see CRS In Focus IF1 1163, 2018 Farm Bill Primer: The Farm Safety Net). USDA's Farm Service Agency administers MFP. In 2019, USDA made several modifications to the MFP payment structure, including increasing funding, expanding the list of eligible commodities, expanding payment limits, and shifting to county-specific rather than commodity- specific MFP payment rates to minimize interference with producer crop choices. Key differences in program provisions of the 2018 and 2019 MFP programs are described in Table 1. Table I . Comnarison of 2018 and 2019 Market Facilitation Prf Up to $10 billion. Started Sept. 4, 2018, for all commodities except almonds and sweet cherries which started Sept. 24, 2018. Initial deadline Jan. 15, 2019, extended to Feb. 14, 2019, due to federal government shutdown. USDA estimated the total direct trade damage related to retaliatory tariffs for each affected commodity.a Then, each commodity's trade damage was divided by its 2017 production to determine a national commodity-specific MFP payment rate. The national commodity-specific MFP payment rate for each commodity times a producer's payment base for each commodity (described below). Up to two tranches: first started Sept. 27, 2018, covering 50% of expected payment; second after Dec. 17, 2018, covering remainder. For late harvested crops, a producer could receive the entire payment in a single tranche after Dec. 17, 2018. Up to $14.5 billion. Started July 4, 2019. Continues through Dec. 6, 2019, for all commodities. USDA estimated the total direct trade damage.b Then commodity-specific payment rates were derived and used to establish a single per-acre MFP payment rate for each county-based on historical average county planted acres, yields, and crop mixes. For non-specialty crops: a single county payment rate. For dairy, hogs, and specialty crops: separate national payment rates for each. Payment rates are multiplied by a producer's payment base (described below). Up to three tranches: first in mid- to late August 2019 covering maximum of 50% of calculated MFP payment or $15/acre. Possible second in November 2019 covering balance up to 75% of calculated payment; possible third in January 2020 covering remainder. MFP-Eligible Commodities and Payment Base Non-Specialty Corn, cotton, sorghum, soybeans, and wheat. Alfalfa hay, barley, canola, corn, crambe, dried beans, Crops dry peas, extra-long-staple cotton, flaxseed, lentils, long- 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. Payment Base Certified farm-level harvested production of each Certified total acres planted prior to Aug. I, 2019, to crop in 2018. MFP-payment eligible crops within county, not to exceed 2018 planted acres. Prevent-plant (PPL) acres in 2019 not eligible for MFP payments unless planted to a CCC-authorized cover crop. MFP payments range from $15/acre up to $1 50/acre. https:!icrsreports co -ess Funding Signup Payment Rates Payments Payment Timeline

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