More Details Released Regarding Pandemic Assistance to Agriculture

LUBBOCK, TX – As Congress agrees to fund the government through next year and also provides just under $1 trillion in pandemic relief, the agriculture industry has been sorting through the details of an additional $13 billion expected to flow through USDA in the coming months.

According to the Southwest Council of Agribusiness (SWAC), the legislation would provide supplemental payments to price trigger and flat rate crops under the Coronavirus Food Assistance Program (CFAP) of $20 per eligible acre.

Payments to livestock and poultry producers forced to depopulate herds due to lack of processing, excluding packers and live poultry dealers, equal to 80 percent of fair market value plus the cost of depopulation offset by any EQIP payment or state program payment.

Payments to cattlemen work to mitigate the distinction between livestock marketed before and after April 15.

So producers that marketed livestock after April 15 will receive 50 percent of the difference between the aid provided on livestock marketed before April 15 and the assistance provided on livestock marketed after April 15.

Breeding stock will receive 25 percent of the difference between the assistance provided on livestock marketed before April 15 and the assistance provided on livestock marketed after April 15.

Payments to contract growers of livestock and poultry covering not more than 80 percent of revenue losses, will be capped at $1 billion.

Payments to domestic users of upland cotton and ELS cotton of 6 cents per pound.

Supplemental payments will ensure assistance more closely aligns with actual losses of producers not to exceed 80 percent of losses.

Authorizes payments to processors for losses of crops due to insufficient processing access and authorizes the Secretary to extend the marketing loan to up to 12 months.
(SOURCE: All Ag News)