Cattle Industry Relief — Frozen
Coronavirus relief package included producer provisions.
After the publication of this article (Jan. 27, 2021), the legislation listed has been frozen. The following is from USDA.
"In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program — Additional Assistance and has halted implementation until further notice. Farm Service Agency (FSA) local offices will continue to accept applications during the evaluation period.
"USDA and the Biden administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources."
After months of intense negotiation, Congress finally settled on a massive 5,593-page spending bill and coronavirus relief package.
The $900-billion coronavirus relief package includes $600 direct payments to individuals and families, enhanced unemployment benefits, small-business aid, and funding for distribution of the COVID-19 vaccine.
The $1.4 trillion omnibus funds the government through next September, and ultimately passed both chambers with overwhelming bipartisan majorities: 359-53 in the House and 92-6 in the Senate.
What’s in the bill for cattle producers?
Livestock Dealer Statutory Trust
The bill ensures that livestock producers are paid for their animals by requiring dealer trusts. In the current system, dealers frequently buy and resell livestock, often grouping them to meet the volume and type needs of their customers. Dealers are allowed to take possession of livestock and pay for them later, and dealers do not maintain a trust account to guarantee payment.
Livestock mandatory price reporting
This bill included a one-year authorization to livestock mandatory reporting, extending the law until Sept. 30, 2021.
Independent processing provisions
The bill also aims to assist meat- and poultry-processing facilities in making improvements to allow for interstate shipment. While doing this, it would require a study on programs for meat and poultry processing and slaughtering facilities.
Livestock transportation
The bill included an extension of the current exemption of the Electronic Logging Devices (ELDs) mandate for livestock haulers through Sept. 30, 2021.
Supplemental payments (CFAP3)
The bill provides additional assistance for cattle producers affected during the height of the pandemic. You may qualify for CFAP 3 even if you did not participate in the previous programs. See Fig. 1 provided by Farm Bureau’s Market Intel outlining what is believed to be the payment structure.
Editor’s note: This article is a release from the United States Cattlemen’s Association.
