The Trump Administration’s has a $12 billion dollar plan to compensate farmers for damages done so far by the trade dispute with China and other nations. Here’s what’s known, so far, about how the plan will work.
The largest part of that money will be paid out to soybean producers, though direct payments will also be made for other commodities including corn, wheat, sorghum, cotton, dairy, and pork. USDA Chief Economist Rob Johansson told reporters on the line the initial damage calculation has already been made, “We’ve calculated what the damage is to producers facing these illegal tariff actions. We are working out the specific details and will be working it out as a rule making action in a couple of weeks and that will have our estimated rates. As the Secretary mentioned, this will be playing out over time and we do look to allowing for the Administration to successfully negotiate a deal here with our trading partners. And so, the program will be flexible to allow that.”
Again, Johansson says the financial damage part has already been calculated, though he also says specific details have yet to be published and or worked out. Should the trade disputes be settled the program is meant to flexible.
This was not said, but it makes sense that a farmer who harvests and sells soybeans prior to the settlement would get a payment, one who sells after the settlement may not.
Assistant Deputy Administrator for Farm Programs, Brad Karmen says FSA, the Farm Service Agency, will be responsible for the sign up, “So we are going to allow producers, we are talking about a September sign-up, and it will probably go for many months. So, producers will have time to visit there FSA count y office. And in order to run this program we need producers to harvest their crop. So, producers that harvest their crop, like wheat for example which in on the list and many of those producers have harvested already. They may be able to get their payment earlier than somebody like corn or soybeans that doesn’t harvest until October. But we need producers to harvest so that we know their production in order to calculate a payment.”
Recapping then… the the bulk of the $12 billion dollars is intended to compensate soybean farmers for damages to their market. The initial calculation has, it appears, already been made but may be tweaked. Sign-up will be done at local FSA offices. Payments will begin once producers provide actual production figures to the FSA. And, the program may change or end prior to payments being made should the Administration settle trade disputes.
As of July 12th, U.S. farmers were expected to produce 4.3 billion bushels of soybeans this season.
Around the nation, USDA reports 81% of the corn crop is silking. The rolling 5yr-avg is 62%. 18% of the crop has entered the dough stage, the 5yr-avg is 8%. The corn crop is in slightly better condition than last week as is the soybean crop. It now stands at 70% good or excellent with 44% of the crop setting pods. The 5yr-avg is about half that amount. Winter wheat harvest is 80% complete.
The commodity markets seemed to have found a bottom for the moment. Todd Gleason has more on what may be next with University of Illinois Agricultural Economist Todd Hubbs.
This Thursday’s USDA’s monthly supply and demand estimates will include the impact of the Trump Administration’s tariffs. Gary Crawford talks with the chair of the World Agricultural Outlook Board Seth Meyer about the July WASDE. The report is scheduled for release at 11 a.m. central time Thursday, July 12, 2018.
Japanese beetles are showing up in corn and soybean fields. These can do enough damage to cause yield losses, but it is fairly unlikely. The University of Illinois has published thresholds for when farmers should spray crops to protect them from the Japanese beetle.
Nick Seiter says there needs to be a lot of beetles and a whole lot damage done before a producer should spend money on a rescue treatment, “Most of the reports that I am getting, as you would expect and as is typical, are below the treatment thresholds. These are 25 percent defoliation after bloom and 35 percent before bloom for soybean and the threshold for silk clipping in corn is consistent clipping to half-an-inch or less regularly throughout the field. I had a question yesterday about what to do when you have both Japanese beetles and corn rootworm clipping silks in the field. The answer is the same, the clipping has to be down to half-an-inch or less consistently through the field while pollination is still ongoing.”
ILLINOIS Extension Entomologist Nick Seiter says farmers have no need to apply a rescue treatment for Japanese beetles until defoliation reaches at least 25 percent after bloom for soybean and silk clipping during pollination is down to half-an-inch or less for corn.