News Corona crisis
US agri-sector thinks 19 billion is too scanty
The announced support package from the US government offers some relief to the agricultural sector. However, the agricultural sector in the country is saying that the support offered will not be enough to absorb the blows of the corona crisis.
On April 17, the 'Coronavirus Food Assistance Program' support package was announced. The package offers a total of $19 billion in aid† The largest financial part of the package goes to the farmers themselves. In addition, part is also spent on buying vegetables, dairy products and meat that go to donation programs.
Great appreciation
The support package is highly appreciated by the American agricultural sector. Farmfirst Dairy Cooperative expresses its gratitude for the package and says it provides much-needed financial support to U.S. dairy farmers.
John Rettler, president of FarmFirst Dairy Cooperative, says the support is vital to dairy production. “The USDA announcement of direct payments to dairy farmers is greatly appreciated to ensure they can continue to produce healthy dairy products,” said Rettler. He added, however, that these much-needed funds should be paid out to dairy farmers as soon as possible. “Time is of the essence as dairy farmers think about how to weather this storm of COVID-19. †
The largest American dairy organization, The National Milk Producers Federation (NMPF), has expressed its appreciation for including dairy products in the support package. Jim Mulhern, CEO of NMPF, said: “We are extremely grateful for the strong pressure from members of Congress across the country to support a significant dairy aid package.”
Marty Smith, president of The National Cattlemen's Beef Association, is also grateful for the support package. “We appreciate Agriculture Secretary Sonny Perdue's announcement that the agency will soon be distributing funding to livestock farmers in urgent need of assistance during this national emergency.”
Support does not meet needs
Despite the high level of appreciation for the package, voices have been heard from various sectors about the need for even more support. Marty Smith reports, "While the relief funds allocated to USDA by Congress are a start to stabilize the industry, there is still much more work to be done to protect the livestock farmers who are an essential part of the agricultural industry and anchor for rural America."
The NMPF reports that more support will be needed to absorb the large losses in the dairy sector. “After a 5-year period of low prices, many producers faced financial difficulties even before the coronavirus crisis. Without more help, this crisis could be their downfall. We hope to work with USDA and members of Congress on the implementation of this plan and in the further assistance that will inevitably be needed as a result of this growing crisis.”
Pig sector wants more support
The pig sector also expects to need more support. "We fear that the lifeline that is so desperately needed will not meet what is really needed," said Howard Roth, president of The National Pork Producers. According to Roth, many generative family businesses will fail without immediate financial assistance. “While the direct payments to pig farmers will offset some losses for some farmers, they are not enough to support the diverse entrepreneurs, including those who own pigs and thousands of contract farmers who care for pigs.”
The fruit and vegetable industry also indicates that it needs more support. For example, Tom Stenzel, CEO of United Fresh, does not think the support is enough. “Secretary Perdue's commitment last night is an important first step, but certainly not enough to face the true devastation in our industry.” He added: "So, while we are grateful, we are once again mobilizing Congress to allocate more resources to a fourth COVID-19 financing program to keep the overall economy and fruit and vegetable industry alive."
Chanti Oussoren
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