The U.S. Department of Agriculture announced the details of the 2019 Market Facilitation Program payments last week, which includes up to $14.5 billion in direct assistance to producers.

The first round of payments will get underway in August. Davie Stephens, president of the American Soybean Association, says his group appreciates the help.

 

“The county rate for farmers in areas with a higher percentage of crops suffering from negative trade impacts will receive a higher offset for the damages we’ve seen because of the tariffs,” he says.

“We appreciate the Administration’s efforts to determine how the payments will work and hope that our soybean growers will feel some relief from the assistance.”

 

Signup for farmers with eligible crops begins on July 29th.

The National Cotton Council also expressed its appreciation for the Administration recognizing the economic pressures caused by the trade tensions with China.

NCC Chair Mike Tate says the assistance is timely as U.S. cotton’s economic health is deteriorating. Cotton futures have fallen by 30 cents per pound since the summer of 2018.

 

“There’s no doubt this downward price pressure is due in large part to cotton sales to China being substantially lower than what we expected before the tariffs,” Tate says.

“Pressure is building in the distribution chain as U.S. cotton exports lag and stocks continue to build higher.”