News Corona crisis
19 billion aid mainly to cattle farmers in the US
The US government's 'Coronavirus Food Assistance Program', announced on April 17, is mainly providing relief to livestock farmers in the country. Beef farmers can count on more than $5 billion in support and dairy farmers almost $3 billion. A total of $19 billion is being earmarked for the sector.
Since the end of March, the US government – and in particular the USDA Department of Agriculture – has been working on support measures for the agricultural sector in the country. At a press conference on Friday, April 17, USDA Secretary Sonny Perdue made the details known of this financial injection.
Most money to farmers themselves
The need is great as farmers in the US increasingly have to dump products. Milk ends up in the manure basin, onions are dumped in the land and vegetables are plowed under. A total of $19 billion will be released, which translates to about €17,5 billion. Of this, $16 billion is intended for farmers and ranchers themselves. Part ($6,5 billion) of this money will come from an existing crisis fund (Commodity Credit Corporation) and part ($9,5 billion) will come from Congress.
The USDA will spend the remaining $3 billion on growing vegetables, dairy products and meats that are distributed to food banks, churches and other charities. An additional $873 million is being held back to repurchase products for food banks at a later date.
Livestock farmers most helped
The beef sector receives the most support. A total of $5,1 billion, followed by $2,9 billion for dairy farmers and $1,6 billion for pig farmers. The so-called 'row crop producers' can count on $3,9 billion. Vegetable growers will be allocated $2,9 billion and other crops $500 million.
A maximum amount of $125.000 (€115.000) to be distributed per product and a maximum amount of €230.000 converted per company. Entrepreneurs can claim 85% of their loss in the period January 1 through April 15. For the 2 quarters after April 15, this is a maximum of 30%. It is little consolation for agricultural entrepreneurs, who expect a growing loss in the coming months. It is said that farmers can expect the money in their account at the end of May, if the enormous official mill allows this.
Criticism of the announced support measures can also be heard. For example, interest representatives complain about the fact that nothing is arranged for employees of agricultural companies to be able to do their work safely.
Lots of support for few farmers
The Organisation Food Policy Action fears that only a small group of farmers will benefit from the aid, as was the case with aids for the trade war. The Market Facilitation Program (MFP) paid out $8,6 billion in direct aid to farmers. Mainly soybean growers. According to the FPA, 10% of the applicants ultimately received half of this amount, because they are large arable farms.
Niels van der Boom
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