Payments for “cash market” hogs can be pro-rated

0

Hog producers will have two more weeks, until April 29, to seek federal payments to offset pandemic-depressed prices offered by packers in the spot market during the summer of 2020, the government said. agriculture department Thursday.

Payments of $54 per hog can be pro-rated if claims exceed Spot Market Hog Pandemic program funding, he said.

The USDA announced the program last December to help hog producers who were forced to accept low cash offers for their stocks from April 16 to September 1, 2020.

Up to $50 million was available for payments.

Pork processors bought fewer pigs and paid lower prices for them as Covid-19 outbreaks among slaughterhouse workers cut pork production.

Payments are available for up to 10,000 pigs per farmer.

The USDA announced the extended claim period and possibly pro-rated payments at the same time as it clarified its definitions of a cash sale and which hogs are eligible for payments.

“The only direct sales to SMHPP-eligible packers are those through a brokered sale,” the USDA said. “Pigs sold under a contract that includes a premium above the spot market price or some other formula such as wholesale cut price remain ineligible. Pigs must be fit and intended for slaughter to be eligible. Immature pigs (pigs) are not eligible.

Share.

Comments are closed.