The speaker discusses USDA relief available for livestock producers who have suffered a decline due to COVID-19 disruptions in the market, using examples from the news to highlight the importance of the food chain. The relief program reimburses for proper disposal of animals and provides payments based on sales and inventory. The speaker goes through different categories of livestock and their payment rates, emphasizing the need to understand the process and the different classes of animals. The payments are calculated based on weights and market prices, with different rates for different types of livestock. The speaker acknowledges the limitations of the payments in covering the total costs for farmers, highlighting the challenges faced by farmers during this time. The speaker encourages farmers to use the available Excel spreadsheet or online calculator to determine their payments and emphasizes the importance of understanding the different classes of animals and the payment rates associated with each.
Navigating the USDA Farmers.gov website can be overwhelming, especially when seeking relief for livestock producers affected by the COVID-19 pandemic. Understanding what qualifies as eligible livestock and how payments are calculated can be crucial in navigating this process. In this blog post, we’ll break down the key information you need to know to access relief for your livestock operations.
Eligible Livestock and Relief Criteria
Livestock producers who have an ownership interest in eligible livestock that have suffered a five percent or greater decline in results due to COVID-19 disruptions may be eligible for relief. This decline could be a result of unexpected surplus, disrupted markets, or slaughterhouse shutdowns. For example, the recent news of slaughterhouses shutting down due to COVID-19 exposure highlights the severe disruption in the food chain.
Livestock such as cattle, hogs, and sheep are eligible for relief, with specific categories like feeder cattle, slaughter cattle, and pigs under 120 pounds identified for potential assistance. It’s essential to understand the distinction between different classes of livestock, as relief payments vary based on the type and weight of the animals.
Calculating Relief Payments
Relief payments are determined based on two main criteria: total sales of eligible livestock between January 15th and April 15th, and the highest inventory of eligible livestock between April 16th and May 14th. Payments are calculated as 85% of the estimated loss for animals sold during the specified timeframes.
To illustrate this calculation, let’s consider an example: if you sold 10 feeder cattle weighing less than 600 pounds during the initial period, you would receive a payment of $102 per head. Additionally, if you retained those same 10 feeder cattle in your inventory from April 16th to May 14th, you would receive a payment of $33 per head. These relief payments aim to assist producers in covering costs incurred due to the impact of COVID-19 on livestock operations.
Practical Considerations and Available Resources
To facilitate the application process, the USDA provides various tools, including an online calculator and downloadable Excel spreadsheet. These resources can help you determine the relief payments specific to your livestock operation. Additionally, Farm Services Agency (FSA) agents are available to guide you through the application process and ensure you receive the assistance you need.
It’s crucial to familiarize yourself with the relief criteria and payment calculations to make informed decisions regarding your livestock operations. By understanding the intricacies of eligible livestock and relief criteria, you can confidently navigate the process and access the financial support necessary to mitigate the challenges posed by the COVID-19 pandemic.
Remember, the goal of this relief program is to provide essential support to livestock producers facing unprecedented disruptions in the food chain. By leveraging the available resources and understanding the relief criteria, you can effectively manage the impact of COVID-19 on your livestock operations and ensure the continuity of your farming activities.
