Cattle producers will receive $5.1 billion of the $9.6 billion of the USDA direct payments for livestock producers. A study from Oklahoma State University estimates cattle industry losses as a result of the COVID-19 pandemic will reach $13.6 billion, alone. That is $4 billion more than the total allocation of funds set aside by USDA for livestock producers. The remaining $4.5 billion is allocated for $2.9 billion in direct assistance for dairy producers and $1.6 billion for hog producers. According to the National Pork Producers Council, industry economists estimate hog farmers will lose $5 billion collectively for the remainder of the year. With the funds allocated for producers, the compensation will be based on price losses between January 1-April 15 and producers will be compensated for 85 percent of price loss during that period. The second part of the payment will be expected losses from April 15 through the next two quarters, and will cover 30 percent of expected losses.
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