How Did Soybeans Receive Three-Fourths Of Initial Aid? USDA To Explain

September 6, 2018 03:20 PM
 
USDA could release more details on how those rates were calculated as early as next week.

Since further details about USDA’s Market Facilitation program, which is part of the agency’s $12 billion tariff aid package, were released, corn and wheat farmers have questioned why their payment rates are so low. USDA could release more details on how those rates were calculated as early as next week.

"If you look at where tariffs were enforced and where we had shipped corn, that’s how the calculations came out," Agriculture Secretary Sonny Perdue said at a press event this week adding USDA used “calculations that are known to economists that will calculate the tariff damages.” Perdue says the final numbers were “affirmed” by the White House Council of Economic Advisers and the Office of Management and Budget. 

Perdue said USDA will be “as transparent as possible” when they explain how the payments were calculated. That explanation could come from USDA’s chief economist, Robert Johansson when he testifies before the Senate Ag Committee on trade next week.

According to Pro Farmer’s policy analyst Jim Wiesemeyer, the explanation comes after officials from the National Corn Growers Association (NCGA) and National Association of Wheat Growers (NAWG) asked USDA officials for more information about the calculations. USDA determined that corn growers will receive payments at a rate of a penny per bushel while wheat growers will get 14 cents per bushel. Those payments are only on half of 2018 production. In contrast, corn growers say they’ve lost 44 cents per bushel on account of retaliatory tariffs, and NAWG estimates wheat growers are losing 75 cents per bushel. Wiesemeyer says soybean growers stand to receive about three-fourths of the initial aid payments.

“On the face of it, I can see why corn farmers would say, ‘Why this, why that for soybeans?’ — yet that was the determined amount of tariff damage,” Perdue told reporters after an event at USDA. “Dr. Johansson has tried to explain [the methodology] to me a number of times.” 

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Comments

 
Spell Check

Steve Burress
logan, IA
9/7/2018 12:31 PM
 

  What the article and others similar fails to report is the fact that the money is only being payed on 50% of the 2018 soybean production.

 
 
David
Ashton, NE
9/7/2018 06:15 AM
 

  I know the Tariff did cause a major futures price decline and major basis widening of soybeans. But all the NAFTA mess has also lowered the Futures price of Corn etc and the basis has widened for most producers. Hopefully those in charge understand what their actions are doing to the future of those in agriculture!

 
 
Mike
Marion, OH
9/7/2018 07:04 AM
 

  All the big farmers have been building bins and storing corn like a squirrel preparing for a 4 year winter,and now they are crying because they lost the bet. If you didn't need the money when you stored it you obviously don't need it now. Hind sight is 20-20, sell it for what you can now if you need the cash and get on with it. I remember when corn was 1.70 and beans were 4.50. we got by then and will now. you will survive

 
 
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