This year’s Market Facilitation Program (MFP) payments offered more assistance to commodities across the board, varying from the 2018 installation, which was weighted most heavily towards soybean producers, according to a new detailed explanation from the U.S. Department of Agriculture on how it came to determine this year’s rates.

“Just as we did before, we want to be transparent about this process and how our economists arrived at the numbers they did. Our farmers and ranchers work hard to feed the United States and the world, and they need to know USDA was thorough, methodical and as accurate as possible in making these estimates,” Agriculture Secretary Sonny Perdue said.

“While no formula can be perfect in addressing concerns from all commodities, we did everything we could to accommodate everyone,” Perdue added.

Perdue explained that the USDA Office of Chief Economist listened to feedback from farmers on last year’s programs and incorporated many of those suggestion in this year’s installment. The National Corn Growers Assn. (NCGA) did agree that some of its suggestions were adjusted in this year’s payment rates.

In 2018, corn producers were disappointed by the 1 cent/bu. support for corn in the first MFP payout, but 2019 offered a payment of 14 cents/bu. to be paid on historical county averages of planted acres and yields.

Related:First round of 2019 MFP payments issued

“We appreciate that it appears USDA considered our recommendations in developing MFP 2.0,” said NCGA president Lynn Chrisp.

NCGA analysis showed an average price loss for corn of 20 cents/bu. from May 2018 to April 2019. NCGA said those losses widened from 40 cents/bu. when trade talks lagged in March and April 2019.

Soybean rates in 2018 were set at $1.65/bu., whereas this year’s rate increased that to $2.05. However, in 2018, payments were based on actual yields from 2018’s harvest. The 2019 payment is based only on planted acres and has a weighted average for what producers in their county saw with past history.

USDA offered the example that for County A that has planted an average of 20,000 acres of corn, 10,000 acres of soybeans and 1,000 acres of barley. The historical average county yield is 180 bu. per acre for corn, 60 bu. per acre for soybeans and 50 bu. per acre for barley. The commodity rates under the 2019 MFP for corn and soybeans are 14 cents/bu. and $2.05/bu., respectively. Since there are no retaliatory tariffs on U.S. barley, the payment rate for barley is $0.00/bu.

County A’s payment rate is calculated as follows: Step 1: For each crop in a county, multiply fixed historical acres, fixed historical yields and the payment rate per unit for each eligible non-specialty MFP crop:

Related:Commodity groups say USDA trade aid falls short

Step 1:

Step 2: Sum all calculated values from Step 1

Step 3: Sum the acres across all eligible non-specialty MFP crops

Step 4: Calculate the county payment rate per acre by dividing the result of Step 2 by the result of Step 3

The 2019 MFP payments for hog producers are based on live hog inventory on a day selected by the applicant between April 1 and May 15, 2019. Eligibility for 2019 MFP payments is again based upon independent ownership of the hogs; persons/legal entities that are contracted to grow hogs are not eligible for 2019 MFP. Hog producers saw a boost from $8 per head in 2018 to $11.

The 2019 MFP payments for dairy producers are based on historical production, the same as what was reported for participation in the USDA Dairy Margin Coverage Program or its predecessor, the Margin Protection Program for Dairy. Dairy payments for this year were set at 20 cents/cwt., up from 12 cents/cwt. in 2018.

For more information on the MFP program, visit www.farmers.gov/manage/mfp. Rule-making and related documents, including the Cost Benefit Analysis (CBA), for trade mitigation programs can be found at www.regulations.gov/docket?D=CCC-2019-0003.