(Posted Thu. May 23rd, 2019)
The National Corn Growers Association (NCGA) today welcomed the Trump Administration’s announcement of up to $16 billion in assistance to help farmers to make up for potential agriculture losses due, in part, to the most recent tariff increases and prolonged trade dispute with China.
“Farmers across the country are struggling. Wet spring weather, trade disputes and tariffs and demand destruction in the ethanol market are forcing farmers to make difficult decisions. We appreciate the Administration’s recognition of these challenges and support for America’s farmers,” said NCGA President Lynn Chrisp who joined President Trump for the White House announcement.
Following President Trump’s announcement that the Administration would be pursuing a second round of trade aid, NCGA put forward recommendations that would provide both short-term assistance and support market access for farmers.
NCGA called on USDA to update the Market Facilitation Program (MFP) to factor market impacts into the calculation of MFP payment rates. NCGA analysis showed an average price loss of 20 cents per bushel from May 2018 to April 2019. As trade talks with China lagged on in March and April of 2019, losses widened closer to 40 cents per bushel.
NCGA is also encouraging additional actions the Administration could take to open markets and provide more certainty to corn farmers, including stopping RFS waivers to big oil refiners and restoring waived ethanol gallons, and resolving trade disputes and tariffs.
“NCGA looks forward to continuing our dialogue with the Administration to craft a complete package that will provide corn farmers with more equitable short-term relief while also supporting and expanding the market opportunities farmers need most,” Chrisp said.