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Sep 06, 2018

Grain Update - Direct Payments

By Kyle Leary - Grain Marketer

On Monday, August 27th the US Secretary of Ag announced details of the plan to assist farms for the suppressed prices due to the trade war with China. $12 billion was set aside for the program that will be distributed in three ways; direct payments to farmers, food purchase and distribution program and global trade promotion.


For our Crystal Valley’s Patrons, the biggest impact will be from the direct payments. Starting on September 4th producers can start registering for the program. Payments will be equal to 50% of your 2018 production x $1.65/bushel for beans and $0.01/bushel for corn. There is the potential for more payments to come later, in December they will announce the payment rate on the final 50% of production. 


Example:  500 acres of beans x 55 b/a = 27,500 bushels in total production  27,500 x 50% = 13,750 bu          

  • 13,750 bu x $1.65 = $22,687.50  = First Payment         
  • 13,750 bu x second payment rate = Second Payment


Other commodities will be receiving payments include: Cotton $0.06/lb, Milk $0.12/cwt, Pork $8.00/head, Sorghum $0.86/bu, and wheat $0.14/bu.  All grain payments will be calculated using 50% of 2018 actual production.  Hog payments will be 50% of live hogs owned on August 1st, 2018.  Initial direct payments are estimated to total $4.7 billion.


Payments are capped per person or legal entity at $125,000 for dairy production and hogs, and at $125,000 for corn, cotton, sorghum, soybeans, and wheat. 


For more information please go to or contact your local FSA office.


Reminder - all corn and beans on Free Delayed Pricing need to be priced by 9/28/18.                    

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