Carthage Veterinary Service COVID-19 Pork Industry Update May 20, 2020

Carthage Veterinary Service is working diligently to support you and the industry through the current crisis.  This is a status update to hit industry highlights and our focus on the following 3 KEY areas: 

1. 1. Keep packing plants running in full production 
   2. If required, support depopulation and disposal 
   3. Indemnity payments for loss of livestock

 Keeping Plants Open

1. 1. Regional idle plant capacity is now at 20% and slowly continues to improve. Most notable increases over last week were at the Smithfield Monmouth and Triumph St. Joseph plants:

   

   2. 1.9 Million head were slaughtered in Week 20, continuing to build on the increase from the week prior. Average carcass weight holds at 220lbs. Click here to see the complete Weekly Summary Report.

   

Depopulation and Disposal

1. 1. No new updates

   Indemnity

   1. No new updates

Updates

1. 1. USDA CFAP (Coronavirus Food Assistance Program)
      • Applications will accepted beginning May 26. Criteria and calculations for the direct payment support include:
      • Provides financial assistance to producers who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.
      • Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.
      • There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation.
      • Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.
      • The program includes $3 billion in planned agricultural product purchases and $1.6 billion in direct payments to hog farmers.
      • Additional information and application forms can be found at farmers.gov/cfap. Producers will apply through their local FSA office. Applications will be accepted through August 28, 2020.
   2. HEROES Act – Livestock Provisions
      • On Friday, the House approved the HEROES Act, a comprehensive $3 trillion bill to provide relief amid the COVID-19 pandemic.
      • The legislation includes several provisions to assist the agriculture industry, including $16.5 billion in direct payments to farmers to cover losses related to the COVID-19 pandemic.
      • The next step is consideration and potential modification in the Senate. It’s likely to be several weeks as the Senate measures effectiveness of previous stimulus efforts.