Farming, ranching industries to get financial aid amid coronavirus pandemic

The Trump administration is preparing to release $19 billion in aid to help farms and related industries to weather the economic harm caused by the coronavirus outbreak, Secretary of Agriculture Sonny Perdue said late Friday.

The assistance is part of the newly created Coronavirus Food Assistance Program (CFAP) and comes as some farms and ranchers struggle with lost customers and an uncertain future due to stay-at-home orders states adopted to slow the spread of the coronavirus.

The orders closed schools, restaurants and many other businesses that bought goods from farms.

“This program will not only provide immediate relief for our farmers and ranchers,” Perdue said, “but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.”

Farm lobbyists in recent weeks have stepped up lobbying for new economic assistance. Producers have reported plummeting prices, compelling some dairies to dump milk and some farmers to leave crops in the ground.

The CFAP will provide $16 billion in direct support to farmers and ranchers who experienced lost demand and oversupply, which led to actual losses impacted by the coronavirus pandemic.

Producers will be compensated 85% of price loss that occurred from Jan. 1 to April 15.

Payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity. Perdue said he is hopeful checks will be received by the end of May.

Of the $16 billion to be issued by the U.S. Department of Agriculture, aid will go as followed:

$9.6 billion for the livestock industry ($5.1 billion for cattle, $2.9 billion for dairy, and $1.6 billion for hogs).

$3.9 billion for row crop producers.

$2.1 billion for specialty crops producers.

$500 million for other crops.

In addition, the CFAP will provide $3 billion for food purchases, beginning with an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products and $100 million per month in meat products.

The USDA will partner with regional and local distributors to have the food distributed by food banks and other nonprofits.

The California Farm Bureau Federation welcomed Friday’s announcement of aid to farms and food banks.

“The entire rural economy has been affected by the sudden, severe shift in demand we’ve seen since the stay-at-home orders went into place,” CFBF President Jamie Johansson said.

“Farmers, ranchers, food processors and others along the food chain are working as rapidly as we can to be sure the food we produce can be redirected from restaurants, schools and other food service outlets to retail stores, where the demand has moved.”

“Aid to farmers and ranchers will benefit the entire rural economy, allowing farmers to continue hiring employees, purchasing essential supplies and keeping food and farm products flowing to the marketplace.

“It’s important at the same time to be sure,” Johansson added, “(that) food reaches people who need it.”

This story was originally published April 17, 2020 at 8:43 PM.