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NCGA Recommendation for USDA's Trade Aid 2.0
USAgNet - 05/21/2019

Trade disputes and tariffs, demand destruction in the ethanol market, devastating weather conditions, stagnant farm incomes, and crumbling infrastructure have combined to create a perfect storm for agriculture.

NCGA's farmer members appreciate President Trump's intent to provide farmers with assistance to make up for potential agriculture losses due, in part, to the most recent tariff increases and prolonged trade dispute with China. NCGA also recognizes the significant work such an undertaking requires of USDA and its employees.

However, a replication of last year's Market Facilitation Program (MFP), which set the payment rate for corn at just one cent per bushel, would be insufficient to come close to offsetting the harm corn farmers are experience in the marketplace. When USDA constructed its 2018 trade mitigation package, NCGA shared analysis that showed trade disruptions had cost $0.44/ bushel, a $6.3 billion loss to corn farmers.

An update to that analysis, capturing corn market impacts from May 2018 to April 2019 showed an average price loss of $0.20/bushel. In March and April of 2019, as trade talks with China lagged on, that loss widened again to closer to $0.40/bushel

In the interest of representing corn farmers' needs and partnering with the Administration in this effort, NCGA is asking the Administration to take the following actions to provide both short-term and long- term assistance to farmers.

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