News

Trade aid program keeping some farmers out of the red in 2018

A farm management specialist says USDA’s Market Facilitation Program will benefit farmers struggling this year.

“Midwest farmers that raise soybeans will get a considerable payment.  It will make the difference between profitability and unprofitability on those soybean acres.”

Gary Schnitkey with the University of Illinois used an average of $54 per acre on soybeans for the average Illinois farm with a 50-50 corn-soybean rotation for his estimate of the impact in the first round of payments.  “If we’re looking at a typical commercial farm in Illinois, which would be about 1,500 acres, that payment would add about $40,000 of income to that farm.”  He says if the trade dispute continues, farm incomes will be much lower next year.

Schnitkey says USDA will announce on December 5^th if there will be a second round of support which he believes will be like the first round.

The current deadline to sign up for the program is January 15.

AUDIO: Brownfield interview with Gary Schnitkey