Farmers will get some welcome relief starting next month from the market impact of the coronavirus, but it will take a second round of payments to keep many in the black this year, and producers may face similar problems into next year.
Cattle, dairy and hog producers as well as corn and soybean growers are expected to collect the largest shares of USDA’s $16 billion in coronavirus relief payments, which are designed to compensate for losses in sales or market value between January and April.
Farmers can start enrolling next week for $16 billion in coronavirus relief payments, but the Agriculture Department has decided to prorate the aid to ensure there is enough money to go around, Agri-Pulse has learned.
Farm groups are awaiting the release any day of USDA’s requirements for $16 billion in direct payments to compensate producers for the market losses caused by the coronavirus crisis. OMB completed its review of the planned program on Friday.
It’s not everything that farm groups wanted, but the broad array of agricultural provisions in a $3 trillion coronavirus relief bill that the House is expected to vote on Friday are likely to find many supporters in the Senate.
House Democrats released a massive new coronavirus relief bill that would provide $16.5 billion in additional direct payments to farmers and authorize USDA to compensate producers who have to dispose of livestock and poultry that can’t be sold because of processing disruptions.
Agriculture Secretary Sonny Perdue expressed confidence at a White House meeting Wednesday that the meat shortages that have forced supermarkets to limit purchases should ease as meatpacking plants fully reopen within the next 10 days.