NPPC Statement on USDA COVID-19 Relief Package
(NPPC) — The U.S. Department of Agriculture (USDA) announced a COVID-19 relief package that includes $3 billion in planned agricultural product purchases and $1.6 billion in direct payments to hog farmers, including payment limitations of $125,000 per commodity and $250,000 per individual. Industry economists conservatively estimate that hog farmers will lose $37 per hog marketed, or $5 billion collectively, for the remainder of the year. The following statement may be attributed to Howard “A.V.” Roth, president of the National Pork Producers Council and a hog farmer from Wauzeka, Wisconsin:
“We fear the lifeline so desperately needed will fall short of what is truly needed. While the direct payments to hog farmers will offset some losses for some farmers, they are not sufficient to sustain the varied market participants, including those who own hogs as well as thousands of contract growers who care for pigs. All of these participants have made sizable investments in a U.S. pork production system that is the envy of the world. Many generational family farms will go bankrupt without immediate financial aid.
“We are thankful for USDA commodity purchases, a step that will hopefully help move a backed up supply of pork to those who need it, creating much-needed plant capacity to harvest market-ready hogs that have lost value as they have backed-up on farms because of COVID-19.
“Our farm sector is made up of different market participants who are dependent on one another to maintain profitable operations. Unlike other industries that have received COVID relief aid without restrictions, many of our hog farmers have been left behind. Without quick action to extend support where it is needed most, we will see pork industry consolidation, a decline in healthy competition that drives innovation and the loss of a relished rural lifestyle for many farm families.”
Source: National Pork Producers Council
Federation Welcomes Announcement of COVID-19 Relief for Farmers
(ALFA) — The Alabama Farmers Federation welcomed news from the U.S. Department of Agriculture outlining relief programs for farmers hit hard by the COVID-19 pandemic.
“We appreciate President Trump, Secretary Perdue and USDA acting quickly to help farmers,” said Federation President Jimmy Parnell. “Direct payments will help the family businesses who provide our food and fiber deal with lower commodity prices and market disruption caused by COVID-19. The purchase of farm products destined for food services shut down by the virus will not only help our farmers, but it will also provide nutritious meals for families in need.”
U.S. Secretary of Agriculture Sonny Perdue announced the Coronavirus Food Assistance Program (CFAP) during President Donald Trump’s 5 p.m. press briefing. This USDA program will take several actions to assist farmers, ranchers, and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need.
“During this time of national crisis, President Trump and USDA are standing with our farmers, ranchers, and all citizens to make sure they are taken care of,” Perdue said. “The American food supply chain had to adapt, and it remains safe, secure, and strong, and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.”
CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals.
- Direct Support to Farmers and Ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
- USDA Purchase and Distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.
On top of these targeted programs USDA will utilize other available funding sources to purchase and distribute food to those in need.
- USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs.
- The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.
American Farm Bureau Federation President Zippy Duvall tweeted his praise for the announcement by Trump and Perdue.
“Thank you to President Trump and Secretary Perdue for working together to come to the aid of America’s farmers and ranchers. This aid will help keep food on Americans’ tables by providing a lifeline to farm families already hit by trade wars and severe weather,” he said.
Further details regarding eligibility, rates, and other implementation will be released at a later date.
Source: Alabama Farmers Federation