Trade Aid. Trade mitigation package. Assistance for farmers impacted by unjustified retaliation. No matter what you call it, we can all agree that the agricultural community has been eager to learn exactly how USDA would authorize up to $12 billion in trade aid slated to be distributed via three programs beginning after the Labor Day holiday.
On August 27, USDA released details about how those payments will be allocated across those three programs and across affected commodities. Here we explore the state-level impact of the largest program, the Market Facilitation Program. As details are made available from USDA, future Market Intel articles will delve into the Food Purchase and Distribution Program and the Agricultural Trade Promotion Program.
The Market Facilitation Program is intended to aid corn, cotton, dairy, hog, soybean, sorghum and wheat producers who have been impacted by retaliatory tariffs enacted by trading partners. Each commodity on the list has faced tariffs of various severity in different and sometimes multiple markets, which has resulted in a wide range of trade and price disruption.