What is the Official Information on Market Facilitation Payments?
What is the official information on Market Facilitation Payments because of the extended trade war with China? Yes, that is the issue, there are not many details that we do know. What makes it even tougher is the late planting season. Many farmers will be forced into considering taking the Prevented Plant option with their crop insurance. The problem is the details of a payment likely will affect a farmers planting decision.
If a payment is based on how many bushels are produced like the first round, a farmer has an incentive to continue to struggle to plant a crop late, mud it in and plant around wet spots. If the payment was based on historical proven yields and acres planted a farmer would receive a payment even if they have to take the Prevented Plant option.
It sound like there will not be much of a corn payment so this will mainly affect soybean acres. Then again, the weather may make the planting decision for us. If it keeps raining every 3 or 4 days there might not be any more beans planted anyway?