Agricultural Economics Department
Date of this Version
7-15-2020
Abstract
In the June 10, 2020 issue of Cornhusker Economics, the Coronavirus Food Assistance Program (CFAP) was described and the average level of payments to Nebraska Corn and Soybean Producers from this program were estimated. CFAP includes payments for both livestock and crops and in this issue, I explain eligibility requirements, payment sources, and expected payments for Nebraska livestock producers. The COVID-19 epidemic in the United States caused hardships for both producers and consumers of livestock products. The virus affected workers in livestock processing and packing plants, in particular, due to the nature of the work which normally requires working in close quarters. Some plants were closed for a certain period while others operated below capacity. As a result, animals already in the pipeline could not be handled and, in the case of hog producers particularly, some animals had to be euthanized. Without depopulation, producers would have had to continue feeding the animals which would then have ended up weighing more than the equipment in most packing plants could handle. Producers who had to depopulate their hogs are also eligible for payments under the CFAP. As of June 12, 2020, the capacity of pork production in federally inspected processing plants was more than 76% and rebounding (Hahn 2020)
Comments
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