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NCGA is asking USDA to reconsider MFP payments

National Corn Growers Association President Lynn Chrisp is asking Ag Secretary Sonny Perdue to reconsider Market Facilitation Program payments ahead of the second round of payments in December.

Chrisp says farmers are disappointed because the first round of payments didn’t capture the real-time trade disruptions on corn markets.

“Everyone in farm country knows that there’s more to the corn market than just what is captured in the exports of whole kernel corn and in this case we are contending the USDA just did not take a look at the other factors,” he says.

NCGA says trade disputes lowered corn prices by 44 cents a bushel, which is about $6.3 billion in lost value to the corn crop.

In a letter, Chrisp asked Perdue to add ethanol and distillers dried grains with solubles (DDGS) to the calculation of damages for corn.

He says damages for ethanol and DDGs amount to about $254 million, which was not accounted for the in the first MFP payments.

“We’re making the case, on behalf of our membership, you need to look at the market in total and a penny for a compensation in the disruption of the market just was not a real number,” he says.

He is also asking Perdue to allow farmers who have production losses from a disaster to use an alternative to 2018 production for their MFP calculations. He says this will ensure farmers are not be penalized twice.

Audio: Lynn Chrisp, National Corn Growers Association