Second payment for MFP funds available
In mid-December, the USDA announced the second and final payment for the Market Facilitation Program (MFP) would be made. Producers need only sign-up once for the MFP to be eligible for both the first and second payments. The MFP sign-up period opened in early September and runs through January 15, 2019.
Producers must complete and sign Part D of FSA form CCC-910 by the January 15 deadline. However, they have until May 1, 2019 to certify their 2018 actual production. There are a couple things to keep in mind before you go to your local FSA office. This new form requires an actual production number by crop and the source of production evidence. You do not need to submit your records to the FSA, as the MFP is a self-certification program, subject to spot check of your production evidence.
The MFP provides payments to almond, corn, cotton, dairy, hog, sorghum, soybean, fresh sweet cherry, and wheat producers who have been significantly impacted by actions of foreign governments resulting in the loss of traditional exports. The MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) Charter Act and is under the administration of USDA’s FSA. Eligible producers should apply after harvest is complete, as payments will only be issued once actual 2018 production is reported.
For farmers who have already applied, completed harvest, and certified their 2018 production, a second payment will now be issued on the remaining 50 percent of the producer’s total production, multiplied by the MFP rate for the specific commodity.
In all cases, applicants must have an ownership interest, be actively engaged in farming, have an average adjusted gross income (AGI) of less than $900,000 for the 2014-2016 tax years, and have complied with regulations on highly erodible land and wetland conservation. Payment rates were determined by USDA, based on their estimates of trade disruptions for the individual commodities. For all commodities covered, the payments will be made on 50 percent of eligible production for the first payment. The second payment for the remaining 50 percent will now be made. These MFP payments will be taxable in the year received.
Payment rates and estimated total payments by commodity are:
– Almonds (shelled): payment rate of $0.03 per pound with an estimated total payment at: $63.3 million
– Corn:?payment rate of $0.01 per bushel with an estimated total payment of $192 million
– Cotton: payment rate of $0.06 per pound with an estimated total payment of $553.8 million
– Dairy (milk): payment rate of $0.12 per hundredweight with an estimated total payment of $254.8 million
– Pork (hogs): $8.00 per head payment rate with an estimated total payment of $580.6 million
– Sorghum: payment rate of $0.86 per bushel with an estimated total payment of $313.6 million
– Soybeans: payment rate of $1.65 per bushel with an estimated total payment of $7,259.4 million
– Sweet Cherries (fresh): $0.16 per pound payment rate with an estimated total payment of $111.5 million
– Wheat: $0.14 per bushel payment rate with an estimat ed total payment of $238.4 million
– Total estimated payments: $9,567.4 million
For the MFP, crop payments will be based on current 2018 production, so farmers could have applied after harvest once they have actual production information. Hog payments were based on the number of owned live hogs, as of August 1. Dairy payments were based on the historical production record for the Margin Protection Program for Dairy, established with the operation’s highest annual milk production during 2011-2013. Dairy farms must have been operating on June 1 to receive payments.
If you haven’t already visited your FSA office to apply for your MFP payment, plan to do so before the January 15, 2019 deadline. You can find additional information and instructions on MFP at: www.farmers.gov/mfp
Steve Johnson is an Iowa State University Extension and Outreach farm management specialist. He can be reached at firstname.lastname@example.org.
Please Enter Your Facebook App ID. Required for FB Comments. Click here for FB Comments Settings page