Source: USDA, 7/13/21 Livestock and poultry producers who suffered losses during the
pandemic due to insufficient access to processing can apply for assistance for
those losses and the cost of depopulation and disposal of the animals. The U.S.
Department of Agriculture (USDA) Secretary Vilsack announced the Pandemic
Livestock Indemnity Program (PLIP) in [recorded] remarks at the National Pork
Industry Conference in Wisconsin Dells, WI. The announcement is part of USDA’s
Pandemic Assistance for Producers initiative. Livestock and poultry producers can
apply for assistance through USDA’s Farm Service Agency (FSA) July 20 through
Sept. 17, 2021.The Consolidated Appropriations Act, 2021, authorized payments to
producers for losses of livestock or poultry depopulated from March 1, 2020
through December 26, 2020, due to insufficient processing access as a result of
the pandemic. PLIP payments will be based on 80% of the fair market value of
the livestock and poultry and for the cost of depopulation and disposal of the
animal. Eligible livestock and poultry include swine, chickens and turkeys, but
pork producers are expected to be the primary recipients of the assistance. “Throughout the pandemic, we learned very quickly the importance and vulnerability of the supply chain to our food supply,” said Agriculture Secretary Vilsack. “Many livestock producers had to make the unfortunate decision to depopulate their livestock inventory when there simply was no other option. This targeted assistance will help livestock and poultry producers that were among the hardest hit by the pandemic alleviate some financial burden from these losses.” Additional Assistance PlannedThe previous administration proposed pandemic assistance using
flat rates across the industry, which does not take into account the different
levels of harm felt by different producers. Pork industry supported analysis
projected that disruptions in processing capacity in the pork supply chain
create a situation with small hog producers and especially those that sell on
the spot market or negotiate prices, bear a disproportionate share of losses.
USDA has examined the difference between the negotiated prices for hogs and the
5-year average and documented a significant drop during April through September
of 2020 due to the pandemic. USDA has set aside up to $50 million in pandemic
assistance funds to provide additional assistance for small hog producers that
use the spot market or negotiate prices. Details on the additional targeted
assistance are expected to be available this summer. PLIP Program DetailsEligible livestock must have been depopulated from March 1, 2020
through December 26, 2020, due to insufficient processing access as a result of
the pandemic. Livestock must have been physically located in the U.S. or a
territory of the U.S. at the time of depopulation. Eligible livestock owners include persons or legal entities who,
as of the day the eligible livestock was depopulated, had legal ownership of
the livestock. Packers, live poultry dealers and contract growers are not
eligible for PLIP. PLIP payments compensate participants for 80% of both the loss of
the eligible livestock or poultry and for the cost of depopulation and disposal
based on a single payment rate per head. PLIP payments will be calculated by
multiplying the number of head of eligible livestock or poultry by the payment
rate per head, and then subtracting the amount of any payments the eligible
livestock or poultry owner has received for disposal of the livestock or
poultry under the Natural Resources Conservation Service (NRCS) Environmental
Quality Incentives Program (EQIP) or a state program. The payments will also be
reduced by any Coronavirus Food Assistance Program (CFAP 1 and 2) payments paid
on the same inventory of swine that were depopulated. There is no per person or legal entity payment limitation on PLIP
payments. To be eligible for payments, a person or legal entity must have an
average adjusted gross income (AGI) of less than $900,000 for tax years 2016,
2017 and 2018. Applying for AssistanceEligible livestock and poultry producers can apply for PLIP
starting July 20, 2021, by completing the FSA-620, Pandemic Livestock Indemnity
Program application, and submitting it to any FSA county office. Additional
documentation may be required. Visit farmers.gov/plip for a copy of the Notice
of Funding Availability and more information on how to apply. Applications can be submitted to the FSA office at any USDA
Service Center nationwide by mail, fax, hand delivery or via electronic means.
To find your local FSA office, visit farmers.gov/service-locator.
Livestock and poultry producers can also call 877-508-8364 to speak directly
with a USDA employee ready to offer assistance. As USDA looks to long-term solutions to build back a better food
system, the Department is committed to delivering financial assistance to
farmers, ranchers, and agricultural producers and businesses who have been
impacted by COVID-19 market disruptions. Since USDA rolled out the Pandemic
Assistance initiative in March, the Department has announced over $7 billion in
assistance to producers and agriculture entities. For more details, please
visit www.farmers.gov/pandemic-assistance.
|