Perdue maintains another round of MFP isn’t likely
The question of whether there will be another round of MFP payments in 2020 continues to arise.
Ag Secretary Sonny Perdue, testifying before a Senate Appropriations subcommittee, says the recent drop in commodity prices related to coronavirus concerns doesn’t justify a payment. “The MFP program was a trade disruption program,” he says. “Not a price support mechanism.”
Perdue admits the President’s tweet a few weeks ago stirred up talks about another possible round of payments.
But the USDA remains hopeful trade with China will materialize and they will meet their Phase One purchase obligations. “But if the trade doesn’t materialize, we’re prepared to look at that again,” he says. “We are hoping for the best. The good news is – I think China in the technical aspects is doing what it needs to do to prepare to fulfill their commitment once this coronavirus subsides.”
Perdue made his comments during the Senate Appropriation Subcommittee hearing on the UDSA’s FY2021 Budget.
AUDIO: Ag Secretary Sonny Perdue on MFP