USDA Announces MFP Payments

February 6, 2020

This week, Agriculture Secretary Sonny Perdue announced the third and final portion of the second round of payments from the Market Facilitation Program (MFP). These are the final 25% of payments due under MFP. This final round brings total payments for 2019 close to $14.5 billion. This program has supported the egg industry through purchases of $20 million worth of eggs and egg products.

“It’s been a great start to 2020 for American Agriculture with the signing of the historic Phase One Deal with China and the signing of USMCA,” said Secretary Perdue. “While these agreements are welcome news, we must not forget that 2019 was a tough year for farmers as they were the tip of the spear when it came to unfair trade retaliation. President Trump has shown time and again that he is fighting for America’s farmers and ranchers and this third tranche of 2019 MFP payments is proof. President Trump is following through on his promise to help and support farmers as he continues to fight for fair market access just like he did with China.”

In May, Secretary Perdue announced three USDA programs to assist with any market disruption due to the trade damage from unfair retaliatory action. MFP, authorized under the Commodity Credit Corporation (CCC) Charter Act, and administered by the Farm Service Agency (FSA), is providing approximately $14.5 billion in direct payments to producers.

The CCC Charter Act authority is being used to implement a $1.4 billion Food Purchase and Distribution Program (FPDP) through the Agricultural Marketing Service (AMS) to purchase surplus commodities affected by trade retaliation for distribution by the Food and Nutrition Service (FNS) to food banks, schools, and other outlets serving low-income individuals.

Finally, the CCC has used its Charter Act authority for $100 million to be issued through the Agricultural Trade Promotion Program (ATP) administered by the Foreign Agriculture Service (FAS) to assist in developing new export markets on behalf of producers.