USDA issues third round of MFP 2019 payments

US farmers will receive a third tranche of direct cash federal aid payments under the US Department of Agriculture's (USDA) 2019 Market Facilitation Program (MFP).

President Donald Trump today authorized the USDA to roll out the third, and final, round of cash payments as part of its $16bn trade aid program, which will start reaching farmers as early as the end of this week, the USDA said.

Today's announcement comes nearly three weeks after China committed to purchase a significant amount of US commodities under a "phase one" trade deal, which includes soybeans, corn and certain fertilizer products. Soybean futures through November 2020 delivery immediately rose by about 4¢/bushel after the USDA announced the final tranche.

Federal aid grew to account for nearly one-quarter of total farmer income in 2019, reaching a 14-year high at $22.4bn, according to the USDA. The burgeoning share last year was driven by MFP payments, which accounted for more than two-thirds of total federal aid disbursed in 2019.

By Connor Hyde