{ "id": "R45310", "type": "CRS Report", "typeId": "REPORTS", "number": "R45310", "active": true, "source": "EveryCRSReport.com, CRSReports.Congress.gov", "versions": [ { "source": "EveryCRSReport.com", "id": 610132, "date": "2019-12-05", "retrieved": "2019-12-13T15:06:08.261233", "title": "Farm Policy: USDA\u2019s 2018 Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. On July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance to farmers in response to the ongoing trade disputes. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments (valued at up to $10 billion) to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation (sweet cherries and almonds were added to this list in September); (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities ($1.2 billion); and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets ($200 million).\nUSDA\u2019s Farm Service Agency will administer the MFP by providing payments in two potential tranches: a first round announced on August 27, 2018, initially valued at $4.7 billion; and an equivalent-valued second round announced on December 17, 2018. However, producers need only sign up once for the MFP to be eligible for first and second payments. The sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018. The sign-up period for fresh sweet cherries and shelled almonds started on September 24. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. Eligible producers should apply after their harvest is complete. Initially, producers were given a deadline of January 15, 2019, to complete an application. However, USDA extended the deadline until February 14, 2019, due to the government shutdown. \nUSDA will base MFP payments on each farm\u2019s 2018 harvested production of eligible crops\u2014including corn, cotton, sorghum, soybeans, wheat, fresh sweet cherries, and shelled almonds\u2014times a fixed per-unit payment rate. Payments to dairy will be based on historical production, while hogs will use mid-year inventory data. It is expected that over three-fourths of the approximately $9 billion in estimated MFP payments will be provided to soybean producers. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities, a combined $125,000 for dairy production and hogs, and, separately, a combined $125,000 for fresh sweet cherries and shelled almonds. As of October 18, 2019, USDA had made $8.576 billion in payments under the 2018 MFP program. \nIn addition to the MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. The smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products. On January 31, 2019, USDA awarded $200 million to 57 organizations through ATP.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been episodic and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R45310", "sha1": "7d1e69f6504e1f45e2fddcb6bde2a48344284598", "filename": "files/20191205_R45310_7d1e69f6504e1f45e2fddcb6bde2a48344284598.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R45310", "sha1": "b2c6fd2581efd9d30842efb855443553f5897436", "filename": "files/20191205_R45310_b2c6fd2581efd9d30842efb855443553f5897436.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source": "EveryCRSReport.com", "id": 600797, "date": "2019-06-19", "retrieved": "2019-07-02T22:13:45.627910", "title": "Farm Policy: USDA\u2019s 2018 Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance in response to the ongoing trade disputes. However, the Secretary stated that there would not be further trade-related financial assistance beyond this $12 billion package. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments (valued at up to $10 billion) to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation (sweet cherries and almonds were added to this list in September); (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities ($1.2 billion); and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets ($200 million).\nUSDA\u2019s Farm Service Agency will administer the MFP by providing payments in two potential tranches: a first round announced on August 27, 2018, initially valued at $4.7 billion; and an equivalent-valued second round announced on December 17, 2018. However, producers need only sign up once for the MFP to be eligible for first and second payments. The sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018. The sign-up period for fresh sweet cherries and shelled almonds started on September 24. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. Eligible producers should apply after their harvest is complete. Initially, producers were given a deadline of January 15, 2019, to complete an application. However, USDA extended the deadline until February 14, 2019, due to the government shutdown. \nUSDA will base MFP payments on each farm\u2019s 2018 harvested production of eligible crops\u2014including corn, cotton, sorghum, soybeans, wheat, fresh sweet cherries, and shelled almonds\u2014times a fixed per-unit payment rate. Payments to dairy will be based on historical production, while hogs will use mid-year inventory data. It is expected that over three-fourths of the approximately $9 billion in estimated MFP payments will be provided to soybean producers. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities, a combined $125,000 for dairy production and hogs, and, separately, a combined $125,000 for fresh sweet cherries and shelled almonds. \nIn addition to the MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. The smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products. On January 31, 2019, USDA awarded $200 million to 57 organizations through ATP.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been episodic and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R45310", "sha1": "e07006985ebe128aa5adcb722379dfed9d1fb17a", "filename": "files/20190619_R45310_e07006985ebe128aa5adcb722379dfed9d1fb17a.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R45310", "sha1": "78c1a8d29f7c61f13333d613ca5055b2ecabcae6", "filename": "files/20190619_R45310_78c1a8d29f7c61f13333d613ca5055b2ecabcae6.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source_dir": "crsreports.congress.gov", "title": "Farm Policy: USDA\u2019s 2018 Trade Aid Package", "retrieved": "2020-09-07T12:24:50.495405", "id": "R45310_16_2019-06-14", "formats": [ { "filename": "files/2019-06-14_R45310_f293630c073fb79a5d96be5e7f9b18db6403cd57.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R45310/16", "sha1": "f293630c073fb79a5d96be5e7f9b18db6403cd57" }, { "format": "HTML", "filename": "files/2019-06-14_R45310_f293630c073fb79a5d96be5e7f9b18db6403cd57.html" } ], "date": "2019-06-14", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R45310", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 598790, "date": "2019-02-08", "retrieved": "2019-05-28T22:16:17.602524", "title": "Farm Policy: USDA\u2019s 2018 Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance in response to the ongoing trade disputes. However, the Secretary stated that there would not be further trade-related financial assistance beyond this $12 billion package. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments (valued at up to $10 billion) to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation (sweet cherries and almonds were added to this list in September); (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities ($1.2 billion); and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets ($200 million).\nUSDA\u2019s Farm Service Agency will administer the MFP by providing payments in two potential tranches: a first round announced on August 27, 2018, initially valued at $4.7 billion; and an equivalent-valued second round announced on December 17, 2018. However, producers need only sign up once for the MFP to be eligible for first and second payments. The sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018. The sign-up period for fresh sweet cherries and shelled almonds started on September 24. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. Eligible producers should apply after their harvest is complete. Initially, producers were given a deadline of January 15, 2019, to complete an application. However, USDA extended the deadline until February 14, 2018, due to the government shutdown. \nUSDA used 2017 production data to estimate that approximately $9.6 billion would be distributed in MFP payments for corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries, and shelled almonds, with over three-fourths ($7.3 billion) of MFP payments provided to soybean producers. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities, a combined $125,000 for dairy production and hogs, and, separately, a combined $125,000 for fresh sweet cherries and shelled almonds. \nIn addition to the MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. \nThe smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products. On January 31, 2019, USDA awarded $200 million to 57 organizations through ATP.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been somewhat intermittent and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R45310", "sha1": "2f8736c9b3a30ebe757ffce1d8e23bfee0598955", "filename": "files/20190208_R45310_2f8736c9b3a30ebe757ffce1d8e23bfee0598955.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R45310", "sha1": "dc526a6b4c2854f9090ac97a6f1e15567f48d1be", "filename": "files/20190208_R45310_dc526a6b4c2854f9090ac97a6f1e15567f48d1be.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source": "EveryCRSReport.com", "id": 589699, "date": "2019-01-10", "retrieved": "2019-01-11T14:04:34.965673", "title": "Farm Policy: USDA\u2019s Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance in response to the ongoing trade disputes. However, the Secretary stated that there would not be further trade-related financial assistance beyond this $12 billion package. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments (valued at up to $10 billion) to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation (sweet cherries and almonds were added to this list in September); (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities ($1.2 billion); and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets ($200 million).\nUSDA\u2019s Farm Service Agency will administer the MFP by providing payments in two potential tranches: a first round announced on August 27, 2018, initially valued at $4.7 billion; and an equivalent-valued second round announced on December 17, 2018. However, producers need only sign up once for the MFP to be eligible for first and second payments. The sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018. The sign-up period for fresh sweet cherries and shelled almonds started on September 24. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. Eligible producers should apply after their harvest is complete. Initially, producers were given a deadline of January 15, 2019, to complete an application. However, USDA extended the deadline on January 8, to an indefinite time period due to the government shutdown. \nUSDA used 2017 production data to estimate that approximately $9.6 billion would be distributed in MFP payments for corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries, and shelled almonds, with over three-fourths ($7.3 billion) of MFP payments provided to soybean producers. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities, a combined $125,000 for dairy production and hogs, and, separately, a combined $125,000 for fresh sweet cherries and shelled almonds. \nIn addition to the MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. \nThe smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been somewhat intermittent and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R45310", "sha1": "b970b7abf7d69eea343ad4e602b86229bb3d3a1d", "filename": "files/20190110_R45310_b970b7abf7d69eea343ad4e602b86229bb3d3a1d.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R45310", "sha1": "8e4dc2c853f733c51a0ef24f69aacbf54046f55b", "filename": "files/20190110_R45310_8e4dc2c853f733c51a0ef24f69aacbf54046f55b.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source": "EveryCRSReport.com", "id": 589122, "date": "2018-12-20", "retrieved": "2019-01-03T14:13:30.655721", "title": "Farm Policy: USDA\u2019s Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance in response to the ongoing trade disputes. However, the Secretary stated that there would not be further trade-related financial assistance beyond this $12 billion package. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments (valued at up to $10 billion) to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation (sweet cherries and almonds were added to this list in September); (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities ($1.2 billion); and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets ($200 million).\nUSDA\u2019s Farm Service Agency will administer the MFP by providing payments in two potential tranches: a first round announced on August 27, 2018, initially valued at $4.7 billion; and an equivalent-valued second round announced on December 17, 2018. However, producers need only sign up once for the MFP to be eligible for first and second payments. The sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018. The sign-up period for fresh sweet cherries and shelled almonds started on September 24. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. Eligible producers should apply after their harvest is complete. Producers must complete an application by January 15, 2019, but have until May 1, 2019, to certify their 2018 production.\nUSDA used 2017 production data to estimate that approximately $9.6 billion would be distributed in MFP payments for corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries, and shelled almonds, with over three-fourths ($7.3 billion) of MFP payments provided to soybean producers. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities, a combined $125,000 for dairy production and hogs, and, separately, a combined $125,000 for fresh sweet cherries and shelled almonds. \nIn addition to the MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. \nThe smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been somewhat intermittent and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R45310", "sha1": "e32dac1dd96b4a48350fbe71184f5597e5772097", "filename": "files/20181220_R45310_e32dac1dd96b4a48350fbe71184f5597e5772097.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R45310", "sha1": "66694e458202aab59c4e0c80272245d493a65ab8", "filename": "files/20181220_R45310_66694e458202aab59c4e0c80272245d493a65ab8.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source": "EveryCRSReport.com", "id": 585687, "date": "2018-09-26", "retrieved": "2018-10-02T15:22:02.032687", "title": "Farm Policy: USDA\u2019s Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance until the ongoing trade disputes are resolved. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments to producers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation; (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities; and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets.\nOn August 27, 2018, Secretary Perdue announced details of the trade aid package, including an initial tranche of $6.1 billion in outlays. Under this initial phase, the MFP is to provide $4.7 billion in direct payments to qualifying agricultural producers. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. The first sign-up period for soybeans, corn, cotton, sorghum, wheat, hogs, and dairy started September 4, 2018, and extends through January 15, 2019. In a September 21 announcement, USDA added fresh sweet cherries and shelled almonds as eligible for MFP payments with a sign-up period that started on September 24. USDA did not provide an estimate of potential outlays for these two crops.\nDuring the sign-up period, an eligible producer may apply for MFP payments\u2014equal to an announced MFP payment rate times 50% of the producer\u2019s 2018 production of eligible commodities. USDA estimates that over three-fourths ($3.6 billion) of the $4.7 billion in initial MFP payments could go to soybean producers. If warranted, USDA may announce a second payment period in early December 2018. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities and, separately, a combined $125,000 for dairy production and hogs. \nIn addition to the initial round of MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. \nThe smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been somewhat intermittent and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities has elicited questions about equitable treatment among affected commodities. On September 13, USDA released a description of its MFP payment methodology, which is based strictly on the estimated direct trade \u201cdamage\u201d\u2014that is, export losses resulting from retaliatory tariffs. Indirect effects\u2014such as the decline in market prices and resultant \u201clost value\u201d for many of the affected commodities\u2014were not included in the payment calculation.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R45310", "sha1": "c2419c11413874704e84d5ef6b7ee226fd0d9ae3", "filename": "files/20180926_R45310_c2419c11413874704e84d5ef6b7ee226fd0d9ae3.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R45310", "sha1": "cbbc57a57d542600a9e8b55f2e035e4d5bc64009", "filename": "files/20180926_R45310_cbbc57a57d542600a9e8b55f2e035e4d5bc64009.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4829, "name": "Agricultural Trade & Food Aid" }, { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] }, { "source": "EveryCRSReport.com", "id": 585115, "date": "2018-09-12", "retrieved": "2018-09-13T22:19:50.493395", "title": "Farm Policy: USDA\u2019s Trade Aid Package", "summary": "In early 2018, the Trump Administration\u2014citing concerns over national security and unfair trade practices\u2014imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. \nOn July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as \u201cunjustified retaliation.\u201d Specifically, the Secretary said that USDA would authorize up to $12 billion in financial assistance\u2014referred to as a trade aid package\u2014for certain agricultural commodities using Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). USDA intends for the trade aid package to provide short-term assistance until the ongoing trade disputes are resolved. The aid package includes (1) a Market Facilitation Program (MFP) of direct payments to farmers of soybeans, corn, cotton, sorghum, wheat, hogs, and dairy who are most affected by the trade retaliation; (2) a Food Purchase and Distribution Program to partially offset lost export sales of affected commodities; and (3) an Agricultural Trade Promotion (ATP) Program to expand foreign markets.\nOn August 27, 2018, Secretary Perdue announced details of the trade aid package, including an initial tranche of $6.1 billion in outlays. Under this initial phase, the MFP is to provide $4.7 billion in direct payments to qualifying agricultural producers. To be eligible, a producer must have an ownership share in the commodity, be actively engaged in farming, and be in compliance with adjusted gross income restrictions and conservation provisions. The first sign-up period started September 4, 2018, and extends through January 15, 2019. During this period, an eligible producer may apply for MFP payments\u2014equal to an announced MFP payment rate times 50% of the producer\u2019s 2018 production of eligible commodities. USDA estimates that over three-fourths ($3.6 billion) of the $4.7 billion in initial MFP payments could go to soybean producers. If warranted, USDA may announce a second payment period in early December 2018. MFP payments are capped on a per-person or per-legal-entity basis at a combined $125,000 for eligible crop commodities and, separately, a combined $125,000 for dairy production and hogs. \nIn addition to the initial round of MFP payments, the Administration announced a Food Purchase and Distribution Program that is to undertake $1.2 billion in government purchases of excess food supplies. USDA has targeted an initial 29 commodities for purchases and distribution through domestic nutrition assistance programs. Purchasing orders and distribution activities are to be adjusted based on the demand by the recipient food assistance programs geographically. \nThe smallest piece of the trade aid package is an allocation of $200 million to the ATP to boost the trade promotion efforts at USDA\u2019s Foreign Agricultural Service, including foreign market development for affected agricultural products.\nUSDA\u2019s use of its discretionary authority under the CCC Charter Act to make direct payments without further congressional action has historically been somewhat intermittent and limited in its scale. While the use of this authority is not without precedent, the scope and scale of this trade aid package has increased congressional and public interest. Furthermore, the significant variation in the announced MFP payment rates for affected commodities and the general lack of transparency behind the MFP payment rate calculations may elicit questions about equitable treatment among affected commodities.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R45310", "sha1": "7ebad9fc9fd13129c40eabecd07d137051e89478", "filename": "files/20180912_R45310_7ebad9fc9fd13129c40eabecd07d137051e89478.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R45310", "sha1": "978b872c18716e4b842b912ded545fb4c8039222", "filename": "files/20180912_R45310_978b872c18716e4b842b912ded545fb4c8039222.pdf", "images": {} } ], "topics": [] } ], "topics": [ "Agricultural Policy", "Energy Policy", "Foreign Affairs" ] }