Farms.com Home   Ag Industry News

USDA to purchase dairy and meat from U.S. farmers

USDA to purchase dairy and meat from U.S. farmers

Sonny Perdue’s department will spend almost US$16 billion

By Diego Flammini
Staff Writer
Farms.com

The USDA has announced it will purchase dairy and meat products from American farmers amid the COVID-19 crisis.

Appearing on Fox Business on Wednesday, Agriculture Secretary Sonny Perdue laid out his department’s US$15.5-billion plan to help producers who are struggling with a lack of demand because of restaurant and school closures.

Dairy producers have been dumping milk, and pork and beef processing plants have closed or reduced staffing to stop the spread of the virus.

“We want to purchase as much of this milk, or other protein products, hams and pork products, and move them into where they can be utilized in our food banks, and possibly even into international humanitarian aid,” Perdue said.

Details on direct payments to farmers could also be announced this week, he added.

The Trump administration’s US$2-trillion stimulus package includes a total of US$23.5 billion for the nation’s farmers.

Pork producers are hopeful the USDA’s plan comes into action sooner than later, as some estimates show industry losses of up to US$5 billion.

“The pork industry is based on a just-in-time inventory system,” Howard Roth, president of the National Pork Producers Council, said in a statement. “Hogs are backing up on farms with nowhere to go, leaving farmers with tragic choices to make. Dairy farmers can dump milk. Fruit and vegetable growers can dump produce. But, hog farmers have nowhere to move their hogs.”

The Department of Homeland Security (DHS) is also taking measures to help protect the U.S. food supply.

Under a temporary final rule, an H-2A (temporary agricultural worker) petitioner with a valid temporary labor certification who is concerned that workers won’t be able to enter the U.S. because of travel restrictions, can start employing temporary international workers who are currently in good H-2A standing in the U.S.

As part of this rule, U.S. Citizenship and Immigration Services is allowing H-2A workers to stay longer than the three-year maximum allowed.

Farms.com has reached out to Dairy Farmers of America for comment.




Trending Video

Funds Ditch Ag Commodities, Chase Stocks Amid an End to Middle East War, & Trade Deal Buzz

Video: Funds Ditch Ag Commodities, Chase Stocks Amid an End to Middle East War, & Trade Deal Buzz


The 12-day war between Iran-Israel came to an end sending crude oil futures plunging as the big fund speculators removed the war risk premium.

The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

Instead, funds were chasing and sending tech stocks higher with the S&P 500/NASDAQ indexes setting new all-time record highs!

June 1 USDA Hogs and pigs report was slightly bearish while the U.S. $ Index traded to new contract lows as the de-dollarization that began in 2014 continues.

Feed in the form of soybean meal futures for livestock producers got cheaper, trading to new contract lows.

The Stats Canada seeded acreage update was bullish canola and wheat.