U.S. soybean farmers welcomed news from President Trump Monday confirming a second payment under the United States Department of Agriculture (USDA)’s Market Facilitation Program.
“Soy growers are very thankful that President Trump understands the need for this payment on the full 2018 production and that the Administration will deliver the second half of the aid as promised. While it will not make our losses whole, it will certainly help offset the drop in prices we have experienced since China cut off U.S. soybean imports,” said American Soybean Association (ASA) president Davie Stephens, a soybean producer from Clinton, Kentucky. “We saw some initial sales of U.S. soybeans to China last week, which was also welcomed news and we hope a sign that the trade war could be turning a corner as a result of President Trump’s recent meeting with President Xi.”
The Administration announced the Market Facilitation Program (MFP) in July as part of a trade aid package to partially offset the short-term impact of foreign tariffs on U.S. agricultural exports, including a 25 percent duty imposed by China on soybean imports. Farmers who apply under the MFP by January 15 and who have been eligible to receive payments on half of their 2018 production will now receive a payment of $1.65 per bushel on their entire harvested crop.
ASA continues to advocate for a negotiated solution to the trade war that would result in China rescinding the 25 percent tariff and fully opening its market to commercial purchases of U.S. soybeans. Said Stephens, “The sooner the market opens and tariffs are rescinded, the sooner we can start to rebuild the exports we have lost this year.”