U.S. Secretary of Agriculture Sonny Perdue today announced the addition of commodities to the trade mitigation package aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations. Starting Monday, Sept. 24, producers of shelled almonds and fresh sweet cherries may apply for Market Facilitation Program (MFP) payments at their local Farm Service Agency (FSA) office. In addition, the timeline for hog producers has been extended.

Perdue announced in July that USDA would act to aid farmers in response to trade damage from unjustified retaliation. President Trump directed Secretary Perdue to craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. These programs will assist agricultural producers to meet some of the costs of disrupted markets.

The sign-up period for MFP for other eligible commodities is now open and runs through Jan. 15, 2019, with information and instructions provided at www.farmers.gov/mfp. The MFP is established under the statutory authority of the Commodity Credit Corporation CCC Charter Act and is under the administration of USDA’s FSA. Eligible producers should apply after harvest is complete, as payments will only be issued once production is reported.

A payment will be issued on 50 percent of the producer’s total production, multiplied by the MFP rate for a specific commodity. A second payment period, if warranted, will be determined by the USDA.

The initial MFP payment rates starting Sept. 24:

MFP payments are capped per person or legal entity at a combined $125,000 for shelled almonds and fresh sweet cherries.

Eligible applicants must have an ownership interest in the commodity, be actively engaged in farming, and have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000. Applicants must also comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations.

Industry appreciates efforts

The Almond Alliance of California issued a statement today saying it appreciates the efforts by the U.S. Department of Agriculture to establish the procedures required to provide direct payments to almond growers to help offset some of the damage being incurred due to the retaliatory tariffs imposed by China and Turkey.

The announcement is a result of the industry coming together and advocating through the Almond Alliance of California (AAC). Elaine Trevino, President/CEO of AAC said “Industry members should be proud that through a unified effort they were able to have their voices heard and be acknowledged for their contribution to the national economy, along with the significant role they play in the international market place.” 

The almond industry has been significantly impacted by retaliatory tariffs and the inclusion of the commodity in the USDA trade mitigation package is a result of a vocal industry and the support and hard work of California’s congressional delegation. Trevino noted, “The direct payment program reflects the hard work of Majority Leader Kevin McCarthy and Chairman Jeff Denham who led the congressional effort including Congressmen Costa, Valadao, Nunes, LaMalfa, Pannetta and Senators Harris and Feinstein. Their combined efforts and leadership helped ensure that the California almond industry received direct payments within the specific program guidelines. We are thankful that our congressional delegation worked hard for our industry and acknowledged the importance of almonds to the California and U.S. economy.” 

Producers of almonds can sign up for the Market Facilitation Program (MFP), which is a direct payment program for eligible almond growers who have been directly impacted by retaliatory tariffs, resulting in significant export losses. The MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) Charter Act and is under the administration of the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA). There are specific eligibility requirements that must be met by an applicant and the maximum payment per applicant is $125,000. Eligible almond growers may apply for MFP September 24, 2018 through January 15, 2019.

Almonds are one of California’s top three valued commodities and the leading agricultural export.  The California almond industry exports 67% of what it produces.  With exports of nearly $4.5 billion in 2017, the California almond industry contributes significantly to the longstanding trade surplus generated by American agriculture. While the mitigation initiatives are helpful, they will not begin to approach the anticipated economic losses and long-term impact these retaliatory tariffs will have on the industry’s trade relationships and the considerable investments made over the years to create market demand in China and Turkey. Trevino pointed out, “We remain hopeful for a quick resolution to the broader trade disputes with these trading partners to ensure open and fair trade so consumers around the globe can continue to enjoy California almonds.”

Expanded Hog Timeline

USDA has expanded the timeline for producers with whom the Aug. 1, 2018, date does not accurately represent the number of head of live hogs they own. Producers may now choose any date between July 15 to Aug. 15, 2018 that correctly reflects their actual operation.

MFP applications are available online at www.farmers.gov/mfp. Applications can be completed at a local FSA office or submitted electronically either by scanning, emailing, or faxing. To locate or contact your local FSA office, visit www.farmers.gov.

Sources: USDA, Almond Alliance of California