About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

GAO-20-700R 1 (2020-08-21)

handle is hein.gao/gaobaebrm0001 and id is 1 raw text is: GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 August 21, 2020 The Honorable Debbie Stabenow Ranking Member Committee on Agriculture, Nutrition, and Forestry United States Senate USDA Market Facilitation Program: Information on Payments for 2019 Dear Senator Stabenow: In May 2019, the U.S. Department of Agriculture (USDA) announced its plans to assist farmers directly affected by trade disruptions and tariffs targeting a variety of U.S. agricultural products. USDA announced it would distribute up to $14.5 billion in direct payments to farming operations that produced three types of commodities in 2019: (1) nonspecialty crops (including grains and oilseeds, such as corn and soybeans); (2) specialty crops (including nuts and fruits, such as pecans and cranberries); and (3) dairy and hogs. The 2019 payments were in addition to the approximately $8.6 billion USDA announced it had distributed for 2018. USDA's Farm Service Agency (FSA) administered these 2018 and 2019 payments, which USDA refers to as the Market Facilitation Program (MFP). In comparison with 2018, in 2019, USDA changed the payment structure for the three types of commodities, including by establishing county-specific payment rates for nonspecialty crops and increasing the payment limit-the cap on payments members of farming operations can receive-from $125,000 to $250,000 for each type, not to exceed $500,000 per person or legal entity.1 To receive the 2019 MFP payments, individuals and legal entities that are members of farming operations had to meet certain eligibility requirements. For example, individuals-including members of legal entities-who received payments for most types of nonspecialty crops, had to have been determined to be actively engaged in farming.2 USDA also issues projections each month that forecast the market price of various agricultural commodities, including eight commodities that were eligible for 2019 MFP payments. You requested that we review the distribution of MFP payments for 2019. This report examines: (1) MFP payment rates for selected commodities and USDA's price projections for these commodities in 2019; (2) MFP payments for 2019 and how the payments varied by location, farming operation, and type of commodity; and (3) additional MFP payments for 2019 compared with 2018 that resulted from increased payment limits. On May 28, 2020, we briefed members 1A farming operation is a business enterprise engaged in the production of agricultural products, commodities, or livestock that is operated by an individual, legal entity (e.g., limited liability company), or joint operation (e.g., a general partnership). A member of a farming operation can be either an individual or an entity. 2Specifically, an individual or entity must provide the farming operation with a significant contribution of capital, land, or equipment, as well as a significant contribution of personal labor or active personal management. Those contributions must be in proportion to the share of the operation's profits and losses, and the contributions must be at risk. GAO-20-700R 2019 Market Facilitation Program Page 1

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most