USDA
Begins Issuing Payments for Spot Market Hog Pandemic Program
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[July 28, 2022]
The U.S. Department of Agriculture
(USDA) is increasing the amount of funding available for the Spot
Market Hog Pandemic Program (SMHPP) and expects to issue
approximately $62.8 million in pandemic assistance payments to hog
producers starting this week. SMHPP assists eligible producers who
sold hogs through a spot market sale from April 16, 2020, through
Sept. 1, 2020. USDA’s Farm Service Agency (FSA) accepted SMHPP
applications through April 29, 2022.
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“In order to provide more targeted support to hog producers
affected by the pandemic, FSA was able to increase funding for
SMHPP to provide full payments to producers instead of applying
a payment factor,” said FSA Administrator Zach Ducheneaux. “We
are pleased to be able to provide more equitable opportunities
for hog producers who were hard-hit by the pandemic.”
SMHPP Payments
SMHPP payments will be calculated by multiplying the number of
head of eligible hogs, not to exceed 10,000 head, by the payment
rate of $54 per head.
FSA originally planned to apply a payment factor if calculated
payments exceeded the allocated $50 million in pandemic
assistance funds for SMHPP. Payments are not expected to be
factored due to Agriculture Secretary Tom Vilsack’s decision to
increase funding enabling producers to receive 100% of the
calculated SMHPP payment.
There is no per person or legal entity payment limitation on
SMHPP payments.
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SMHPP Background
USDA offered SMHPP in response to a reduction in packer
production due to the COVID-19 pandemic, which resulted in fewer
negotiated hogs being procured and subsequent lower market
prices. The program is part of USDA’s broader Pandemic
Assistance for Producers initiative and addresses gaps in
previous assistance for hog producers.
USDA touches the lives of all Americans e
ach day in
so many positive ways. Under the Biden-Harris administration, USDA
is transforming America’s food system with a greater focus on more
resilient local and regional food production, fairer markets for all
producers, ensuring access to safe, healthy and nutritious food in
all communities, building new markets and streams of income for
farmers and producers using climate smart food and forestry
practices, making historic investments in infrastructure and clean
energy capabilities in rural America, and committing to equity
across the Department by removing systemic barriers and building a
workforce more representative of America. To learn more, visit usda.gov.
[USDA-Natural Resources Conservation
Service] |