USDA Releases MFP Program Details; Payments Start Mid-August
- The USDA announced that the federal government will pay American farmers between $15 to $150 per acre starting from mid- to late-August.
- The payment structure represents the second round of farm assistance programs following President Donald Trump's $12 billion plan last year.
- The current MFP package the USDA established a compensation structure based on county level rates.
- USDA said payment registrations would begin on Monday, July 29 and last through December 6. The payments will be conducted in three tranches, levels.
- The first payment will be comprised of the higher of either 50% of a producer’s calculated payment or $15 per acre and will be made during mid-to-late August.
- If conditions warrant, the second tranche, payment, will be made in November, and the third in early January.
- What It Means For The US Farmer: At FBN we believe that the MFP payments have the ability to help mend some of the economic damage that the U.S. farmer has suffered through by the trade policies of two Presidential administrations. We believe that the payment structure has the ability to cause some questions.
U.S. Wheat Quality Tour Spring Wheat Yields: 43.1 BPA
- The Wheat Quality Council estimates that 2019 U.S. spring wheat yield at 43.1 BPA, +2 BA YoY.
- The 43.1 BPA is higher YoY but is below the 5 year average of 44.7 BPA.
- Scouts on the Wheat Quality Council's three-day tour surveyed 356 spring wheat fields in North Dakota, Minnesota and South Dakota.
- The tour noted that while the development was slightly behind, the quality was high and that widespread disease was not prevalent.
- In the weekly crop progress reports, the USDA reported that the spring wheat planting pace in key states was slower than the 2018 and the 5 year averages.
- What It Means For The US Farmer: At FBN we believe that the Wheat Quality Council’s spring wheat yield data can have interesting implications. An acreage reduction from 2018 to 2019 combined with below-trend yields can be viewed as slightly negative as spring wheat production can run slightly on par with 2018.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)