U.S. pork producers are frustrated by the questions surrounding the USDA’S Spot Market Hog Pandemic Program (SMHPP). However, Illinois Pork Producers Association Executive Director Jennifer Tirey encourages producers to get their applications in by this Friday (Feb. 25), despite the uncertainty about possible changes in regulations.
This program, part of USDA’s Pandemic Assistance for Producers initiative, will accept applications through Feb. 25, at USDA’s Farm Service Agency (FSA) offices. SMHPP provides assistance to producers who sold hogs through a negotiated sale from April 16, 2020, through Sept. 1, 2020, the period in which these producers faced the greatest reduction in market prices due to the COVID-19 pandemic.
“Early on, FSA told us the program was basically on hold, that they were not allowed to approve or disapprove any applications,” Tirey says. “This gave us a feeling they were going to delay the deadline, but they are not.”
She believes some uncertainty popped up when producers began filling out their applications and found there were some questions about the program that weren’t answered in the guidelines.
“We have a great relationship with our USDA FSA state office,” Tirey says. “They were having trouble getting answers for us to share with our producers. After speaking with FSA last week, they indicated the deadline hasn’t changed. We’re trying to remind producers, that even though the program parameters are still up in the air, it’s very critical you get your application in.”
Questions remain about the definitions of who can qualify as far as buyers, sale barns and culls.
“There are several uncertainties our producers are a bit frustrated by because there are not clear definitions. I’m trying to be positive for them by saying at least get your application in,” she says.
One producer asked during an FSA presentation at the Illinois Pork Expo if he fills out something wrong on the application because of the uncertainty around the guidelines, will his application be rejected?
Dusty Ponce of the Illinois state FSA Office said based on her experience, FSA would give producers a chance to update their submitted applications.
“What’s critical is they will be in the pipeline if they need to make changes because we don’t want them to lose any dollars. That’s the bottom line,” Tirey says.
USDA defined negotiated sale, or negotiated formula sale, as a sale by a producer of hogs – excluding breeding stock – to a packer under which the base price for the hogs is determined by seller-buyer interaction and agreement on a delivery day.
The National Pork Producers Council met with FSA to propose expanded interpretation of “packer” to include “anyone with reasonable intent to slaughter,” NPPC CEO Bryan Humphreys shared during his keynote at the Illinois Pork Expo. NPPC said sales to meat lockers, private individuals, dealers, buying stations, cull markets, etc., should be included. NPPC continues to encourage FSA to make changes.
More from Farm Journal’s PORK:
USDA Announces Additional Pandemic Assistance for Hog Producers
