Farmers are seeing payments from the first round of the latest trade aid in the mailbox. Farm Service Agency director Richard Fordyce says the first payments are being mailed out now, and farmers are reporting receiving the checks.
Round one of the three potential payments is 50 percent of the overall amount farmers may receive. USDA expects up to $14.5 billion of payments will be sent to farmers, pending on the trade negotiation progress. Another 25 percent of the total would go out later this fall, if the Department of Agriculture deems the payments necessary. The final round, if needed, is planned for some time around January.
The payments are meant to offset the losses stemmed from trade uncertainty with China. Payments range from $15 to $150 per acre for row crop producers, depending on location. For specialty crop producers or dairy and hog producers, payments are based upon certain reporting parameters.
This is the second time the Trump administration has used the Market Facilitation Program since the trade renegotiation with China began.