On July 24, the USDA announced a $12 billion trade mitigation plan consisting of three programs that will assist farmers impacted by trade retaliation. Below is a brief description of each program:
- Market Facilitation Program will provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy and hog. Payments will not occur until after harvest because USDA needs to know individual production levels in order to calculate the payment. Therefore, payment dates will vary by commodity. The majority of the $12 billion will go towards this program.
- Food Purchase and Distribution Program will purchase surplus commodities such as fruits, nuts, rice, legumes, beef, pork and milk to distribute to food banks.
- Trade Promotion Program will assist, in conjunction with the private sector, in developing new export markets. This program is not targeted to specific commodities.
All three programs are authorized under Section 5 of the CCC Charter Act. These programs will not require congressional approval. USDA will be publishing a rule-making action in a few weeks.