DES MOINES, Iowa — The nation’s hog farmers are grateful for the money they are receiving from the federal government — but more is needed.
Four pork producers and National Pork Producers Council officials spoke about the current situation on farms and throughout the U.S. pork supply chain.
The message? The crisis of backed-up supplies of live hogs isn’t going away anytime soon and more federal funds are needed to keep the owners of those pigs in business.
“It’s unclear when we will return to full processing capacity,” said Howard “A.V.” Roth, the president of the NPPC and a pork producer from Wisconsin.
Roth emphasized the need for quick passage in the U.S. Senate of the Heroes Act.
The bill, passed in the U.S. House in May, would authorize more direct payments for owners of market-ready livestock that have been depopulated due to packing plant backups and shutdowns.
The $3 trillion bill is the second economic stimulus bill to offer financial benefits to people and industries hard hit by the impacts of COVID-19.
The bill offers a second round of single payments to Americans, $1,200 for an individual, $2,400 for joint filers and $1,200 for up to three dependents.
In addition, the bill offers help for livestock, dairy and specialty crop producers.
According to NPPC, U.S. pork producers are slated to lose some $5 billion due to the impacts of COVID-19.
Roth said that producers welcomed the $1.6 billion that was allocated for pork producers in the Coronavirus Food Assistance Program. Sign up for that program started May 26 and continues through August.
However, Roth said that amount — and the payment limitations of $250,000 per person and legal entity — would not be enough to keep many farmers in business.
“Unlike the USDA program, the Heroes Act does not mandate payment restrictions, insuring that relief is extended to all farmers who are most heavily invested in pork production. We ask that USDA maintain this structure in any implementation,” Roth said.
While the CFAP payment limits are not included in the Heroes Act, packer-owned animals are not eligible for coverage and the direct payments in the Heroes Act for depopulated livestock cannot exceed the average market value of the livestock on the date of depopulation.
The Heroes Act also would establish a livestock dealer trust fund to ensure that producers who make cash transactions are paid for their livestock. The bill would give $300 million to the Farm Bill Animal Disease Prevention and Management Fund.
The pork producers on the call all spoke of the uncertainty they face in trying to get pigs to a processing facility, with some producers having as little as 24 hours notice from packers to get a load of pigs into a plant.
Mike Paustian, who operates a farrow-to-finish hog operation near Walcott, Iowa, said the current uncertainty is taking on a long-term feel. He related a story that he and his wife were weaning pigs prior to the media call.
At 5 months old, those pigs are about halfway through their growth cycle and should be headed for a processing facility in about five more months. Paustian is unsure if that will happen.
“Is there a future for these pigs? Where are they going in five months — because I don’t know whether we’re going to be out from under this backlog by then,” he said.
Kevin Hugoson, of Granada, Minnesota, operates a farrow-to-finish farm.
Hugoson said despite working to be resilient on his farm, which he operates with his wife, son and daughter, the impacts of COVID-19 on the pork industry and on his farm are an unknown challenge.
“This COVID-19 is a whole other beast that we’ve never experienced. So many things are out of our control in terms of when we deliver our pigs, if they can be taken, how that affects labor. The financial implications are very strong,” Hugoson said.
He added that those who sell hogs on a cash basis are losing from $60 to $70 a head right now.
“That’s happening whether you are a small producer or a large producer. That’s not sustainable for the long term,” Hugoson said.