The U.S. Department of Agriculture has announced $50 million of additional assistance for hog producers who faced reduced market prices due to the COVID-19 pandemic. The Spot Market Hog Pandemic Program addresses gaps in previous assistance. South Dakota Pork Producers Council President Shane Odegaard says it covers eligible producers who sold hogs through a negotiated sale from April 16 to September 1, 2020.
USDA is offering the program as packer capacity was reduced by the pandemic due to employee illness and supply chain issues, which resulted in hogs backing up and lower market prices. He says payments will be calculated by multiplying that $54 by the number of head of eligible hogs.
Odegaard says producers will need to show proof of marketing similar to past pandemic assistance programs.
The Adjusted Gross Income caps may also apply. Signup starts December and FSA will issue payments as applications are received and approved.