In July, U.S. Secretary of Agriculture Sonny Perdue announced details for the 2019 Market Facilitation Program (MFP) package to assist farmers in response to trade damage from retaliatory tariffs. The 2019 program is different in several ways than the 2018 program, including an exemption from the $900,000 Adjusted Gross Income (AGI) limitation if 75% of one’s income is derived from farming as well as a payment method based on bearing acres instead of pounds.
Now, with the program deadline quickly approaching, almond growers even slightly interested in receiving MFP funds need to act fast to be considered to receive funding – all it takes is a phone call.
According to USDA State Executive Director for the Farm Service Agency (FSA), Connie Conway, growers need to contact their local FSA office before 4:30 p.m. PT on Friday, December 6, to make an appointment and be placed on FSA’s running list of interested applicants. As long as they make that phone call, or visit their local FSA office to schedule an appointment in person, by 4:30 p.m. on Dec. 6 they will be recognized by FSA as having interest in the program and will receive a call from FSA after Dec. 6 to arrange a time to meet and further discuss the application process.
If growers meet this deadline, they may be eligible to receive funds through both the 2018 program and the 2019 program, provided program eligibility requirements are met.
Conway pointed out the strong financial incentive for growers to apply. In 2018, MFP payments were based on 3 cents per pound of almonds produced. In a typical orchard with an average yield of 2,200 pounds per acre, that works out to about $66 per acre. This year – when China escalated the tariffs – USDA revised the payment formula to offer growers $146 per acre. That means for a grower with 80 acres of almonds, MFP funds are worth roughly $5,280 through the 2018 program and $11,680 through the 2019 program.
“Though 2019 MFP funds were announced back in July, we are still receiving applications daily from specialty crop growers because of the different payment method and ultimately greater funds provided to producers,” said Conway. “Overall, we’re seeing more interest in MFP this year than in 2018, and growers feel like applying for the program is well worth their time.”
Growers who applied for MFP in 2018 and now want to apply for 2019 funds can look forward to a much simpler application process. Because their information is already in FSA’s system – they already have a farm number with FSA and comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations – all they need to do is fill out an application, provide their AGI and certify their acres. Still, those growers must also abide by the Friday, Dec. 6 deadline, so at the bare minimum they must contact their local FSA office to set up a meeting to walk through the application process by that date.
If you’re interested in apply for MFP, please contact your local FSA office (a list offices in the growing region may be found on page four). More information about the Market Facilitation Program may be found at Almonds.com/Growers, including a list of FAQs, and growers with additional questions may contact Julie Adams, ABC’s VP of Global Technical and Regulatory Affairs, at jadams@almondboard.com.
