The RMA has determined the 2019 MFP payments for non-specialty crops, specialty crops, and dairy will not be counted as revenue-to-count for WFRP claims but will be for hogs. The reason for this determination is that payments for non-specialty crops, specialty crops, and dairy are not based on the current year production while hog payments are.
A loss under a WFRP policy occurs when the revenue-to-count for the insured tax year falls below insured revenue. Revenue-to-count is approved revenue, adjusted by excluding inventory from commodities sold that were produced in previous years and including the value of commodities produced during the tax year that have not yet been harvested or sold. Because the MFP payments will not be counted as revenue-to-count, WFRP losses will not be adjusted to include the payments, unless they are for hogs.
The Market Facilitation Program provides direct payments to assist producers who have been affected by retaliatory tariffs that have caused a loss in traditional exports. The payments are based on a county rate and producer’s total plantings of eligible MFP crops. Non-specialty crop payments range from $15-$150 per acre. The dairy rate is $0.20 per hundredweight and the hog rate is $11 per head. Although some payments have already been made, you may apply through Dec. 6, 2019.