U.S. Agriculture Secretary Sonny Perdue says the agency is not working on a third round of Market Facilitation Program payments and advises farmers to plant for the market. Speaking at Commodity Classic on Friday Perdue told farmers he has advised President Trump that the MFP payments were only a trade-damage mechanism.
He says if trade resumes and markets don’t move that will be a signal that farmers are producing too much of one commodity or another, reiterating that price is a function of both supply and demand.
Perdue says the administration believes that prices will rise as commodities start to flow to China again, but possibly not until after coronavirus is under control.
Perdue added he expects the next World Agricultural Supply and Demand Estimates report to reflect more of the phase-one deal as well as the coronavirus.
