Capital Update – For the Week Ending Jan. 27, 2023

In this week’s National Pork Producers Council Friday recap: USDA Pandemic Assistance Revenue Program announced and Farm Bill hearing dates set. Take a deeper dive below. 

USDA Pandemic Assistance Revenue Program Available to Eligible Producers 

What happened: The United States Department of Agriculture (USDA) has announced a new program to provide support for agricultural producers impacted by COVID-19. The Pandemic Assistance Revenue Program (PARP) will provide financial assistance to producers who suffered at least a 15 percent decrease in allowable gross revenue for the 2020 calendar year compared to 2018 or 2019. PARP payments will be made on a whole-farm basis rather than by commodity and will be calculated based on differences in revenue minus any assistance received from the Coronavirus Food Assistance Program (CFAP), the Pandemic Livestock Indemnity Program (PLIP) or the Spot Market Hog Pandemic Program (SMHPP). 

When and where can eligible producers apply: Farm Service Agency (FSA) will now accept applications through June 2, 2023. Payments will be issued after the application period ends in June. 

Eligible producers can apply for PARP by working directly with the FSA office at their local USDA Service Center or online through the PARP application portal. Additional details can be found here. 

Why it matters: According to USDA, “Previous programs under USDA’s Pandemic Assistance for Producers initiative targeted specific loss aspects, such as price loss. To address gaps in assistance, PARP targets overall revenue losses and supports producers of certain commodities that were not previously eligible for pandemic assistance. Producers who participated in previous USDA pandemic assistance programs may receive additional assistance through PARP if they exhibit a revenue loss after factoring in other payments.” 

Hog producers that experienced more than a 15% revenue loss in 2020 compared to prior years may be eligible for PARP payments. To be eligible, producers must have been farming for at least part of the 2020 calendar year and have an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018. 

Learn more about PARP and allowable gross revenue here. 

First Few Farm Bill Hearing Dates Set 

What happened: The United States Committee on Agriculture, Nutrition and Forestry announced upcoming Farm Bill hearing dates. The first hearing scheduled for Feb. 1, will focus on issues under the trade and horticulture titles of the next five-year agricultural blueprint. 
 
Scheduled to testify before the panel are the U.S. Department of Agriculture’s Alexis Taylor, Under Secretary for Trade and Foreign Agricultural Affairs; Jenny Moffitt, Under Secretary for Marketing and Regulatory Programs; and U.S. Agency for International Development’s Sarah Charles, Assistant to the Administrator for USAID’s Bureau for Humanitarian Assistance.

Dates:

Why it matters: The Farm Bill legislative package is updated every five years, and the last bill was approved in 2018. With the current law set to expire on Sept. 30, 2023, lawmakers are preparing to draft new measures affecting agriculture, rural and nutrition programs. For NPPC, the 2023 Farm will be an opportunity to renew and expand key Farm Bill programs that protect the pork industry. 

Resources: To stay up to date and listen in, check out the hearing calendar here.