Second Round of MFP Payments Announcement Still Expected This Week

December 3, 2018 09:08 AM
 
 

Soybean prices shot up Sunday night on news of a trade truce between the U.S. and China. That news came out of a dinner Saturday night between delegations from both countries, led by President Donald Trump and China President Xi Jinping.

While volatility hit the market the first week of December, it’s also the week USDA is expected to announce the second tranche of Market Facilitation Program (MFP) payments to ease economic pain from Chinese tariffs. Despite the trade truce, Washington insiders believe the announcement will still come out this week. USDA Secretary Sonny Perdue is speaking Monday in Chicago, so that news could hit as early as Monday.

“I think it could be made this week,” said Farm Journal Washington Correspondent Jim Wiesemeyer. “When an Ag Secretary goes out there like to make news - and maybe that's part of it, I've not been told that - but that could well be the news.”

Not only are there questions about when the announcement will be made, but what the announcement will entail. The first round of MFP payments included $1.65 per bushel for soybeans, a penny per bushel for corn and $.12 cents per hundredweight for dairy.

“My hunch is that there will be no change in the payments, maybe they might tweak a bit or two to answer some of the farmer complaints that it did not include some of ethanol impacts and some you know basis issues,” said Wiesemeyer.

USDA Under Secretary Bill Northey already confirmed to AgWeb that the second tranche of payments will be for the remaining 50 percent of production, however, the agency didn’t confirm what those payments will be.

Related Stories:

Soybeans Boosted by China Tariff Truce, But for How Long?

Round Two of Tariff Aid Payments Coming Soon

What You Need to Know About Getting Second Round of Tariff Aid Payments

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Comments

 
Spell Check

Jim Weeber
Goshen, IN
12/4/2018 05:56 AM
 

  The fall farm payment was negated in the face of lower commodity prices across the agricultural community. Seems odd a payment schedule was assembled for soybeans while other agricultural interests have been forced to make due as we move forward. Would like to hear some discussion about what generated payments to only a particular production group. Should politics favor an ag commodity? Does it matter if prices are lowered due to tariffs, verses weather, acres planted, carryover or the myriad of things we’ve seen affect prices at the farm without notice? I’m happy for you if you grow soybeans. Have we witnessed the skewing of payments at the farm level to a particular segment? Do we want to see this type of commodity roulette in the future? Thinking about those who signed up at their FSA offices by the deadlines. Did all they promised and recieved no payment this fall that is normally expected.

 
 

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