Market Facilitation Program 2.0

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Download   MFP20pdf / 0.14MB Publication ID: Staff Report No. 2019-49

MFP 2.0

Naveen Adusumilli

Dept. of Agricultural Economics and Agribusiness

The Market Facilitation Program (MFP) for 2019, administered by the USDA’s FSA includes a commitment of $16 billion, an increase from $12.0 billion in MFP 1.0 administered in 2018. The package includes the same three commodity groups as in 2018. They are non-specialty crops (grains and oilseeds), specialty crops (nuts and fruits) and animal products (hogs and dairy).

The changes in 2019 package include

  • The rates in 2019 reflect a single county per acre rate for eligible crops
  • Payment limits per individual per commodity group is set at $250,000, an increase from 125,000
  • Maximum combined payment limit across commodity groups is set at 500,000, an increase from 375,000

Producers can apply for MFP 2.0 payments as long as they met the eligibility criteria, which are

  • Have ownership and are actively involved in the operation
  • Comply with the conservation provisions
  • Have filed the 2019 acreage report, and
  • Have an average AGI for years 2015, 2016, and 2017 of less than $900,000 or AGI greater than $900,000 with at least 75% derived from farming, ranching, or forest-related activities

Additional caveats

  • Farmers are not required to have purchased crop insurance or coverage under the Noninsured Crop Disaster Assistance Program to participate in the MFP 2.0
  • Producers prevented from planting MFP-eligible crops due to weather but filed prevent-planting claims under FSA and planted FSA approved cover crops, with potential to harvest or used as forage, are eligible for the minimum $15 per acre payment.
  • Acres that were never planted in 2019 are NOT eligible for MFP payments.
  • MFP payments DO NOT count toward other farm Bill payment limitations.
  • Acres eligible for ARC and PLC may be eligible for MFP payments.

MFP 2.0 payment start dates

  • Aug 22, 2019, first portion of the process has begun consisting of the higher of either 50% of producers’ calculated payment or 15 per acre
  • The second portion, sometime in November 2019, if USDA deems it warranted. The payment would be 75% of producers’ calculation minus the amount received during first tranche.
  • The third portion, sometime in January 2020, if USDA deems it warranted.

2019 rates for commodities of interest to Louisiana Farmers

Corn; $/buSoybeans; ; $/buCotton; $/lbRice; $/cwtSorghum; $/buWheat; $/buHogs; $/headDairy; $/cwtTree nuts; $/acre
9/5/2019 6:56:15 PM
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