Farms.com Home   Ag Industry News

Ag included in federal COVID-relief packages

Ag included in federal COVID-relief packages

The Senate and House each introduced aid packages within the last two months

By Diego Flammini
Staff Writer
Farms.com

U.S. lawmakers have included the ag sector in latest COVID-19 relief bills.

On July 27, the Senate introduced its Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, which would provide $1 trillion in total federal relief spending.

The ag sector would receive a significant portion of the total.

The HEALS Act earmarks $20 billion to Agriculture Secretary Perdue’s department to “prevent, prepare for, and respond to coronavirus by providing support for agricultural producers, growers and processors impacted by coronavirus, including producers, growers, and processors of specialty crops, non-specialty crops, dairy, livestock and poultry, including livestock and poultry depopulated due to insufficient processing access and growers who produce livestock or poultry under a contract for another entity.”

If passed, the HEALS Act, combined with March’s Coronavirus Aid, Relief, and Economic Security (CARES) Act, would provide the USDA with $43.5 billion to design and deploy ag assistance programs related to COVID-19.

In addition, the HEALS Act sets aside $457 million for the USDA to address other issues including making up for lost user fees.

“We are grateful to Leader McConnell and Senate Leadership for placing a high priority on bringing relief to America’s farmers and ranchers throughout this crisis. The additional $20 billion for agriculture in the HEALS Act would come at a critical time as the impact of this pandemic continues to hit our farms and rural communities,” Zippy Duvall, president of the American Farm Bureau Federation, said in a July 28 statement.

The House of Representatives introduced and passed its own additional COVID-19 relief package in May.

On May 15, the House passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, a stimulus package worth $3 trillion.

U.S. ag is included in that bill too.

The House bill includes $16.5 billion for direct payments to farmers, $20 million to help connect farmers with stress-assistance resources, $100 million in funding to help manage the specialty crop supply chain and $50 million to support new and beginning farmers with financial and operational advice.

The House and Senate need each other’s co-operation to see one of the bills pass to the president’s desk.


Trending Video

U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!