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AG ECONOMIC INSIGHTS: DIRECT PAYMENTS TO FARMERS SET TO SOAR IN 2019
Aug. 1, 2019
Source: Agricultural Economic Insights news release
To view the complete report, click here.
While producers wait for the USDA to release meaningful information about how MFP 2.0 might impact their farm's financial projections, we thought it would be helpful to provide context about all forms of direct payments in 2019. Specifically, this week's post reviews direct farm payment and how the latest round of trade aid will send direct farm payments significantly higher in 2019.
Data and Assumptions
A few comments about the data. First, the USDA's net farm income projection from March 2019 - the latest data- were used as the baseline for 2019 direct payments and farm income. From this, MFP 2.0 payments for 2019 were assumed to be 2/3 of the total estimate of $14.5 billion, or $9.7. The 3rd round of payments would be paid in early 2020. Of course, the 2nd and 3rd MFP payments are not a guarantee.
The $9.7 billion in MFP 2.0 payments were added to the March 2019 projection of income and direct payments.
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