Thread: Covid-19 hits hog farmers, processors

Covid-19 hits hog farmers, processors

By RYAN MCCRIMMON
04/15/2020 10:00 AM EDT

With help from Helena Bottemiller Evich
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QUICK FIX

— The pork industry could see $5 billion fly out the window this year as processing plants shut down because of the coronavirus and hog prices plummet. The industry is asking for “equitable” treatment under federal stimulus programs.
— The Agriculture Department could be forced to start from scratch as the Trump administration tries to unwind Obama-era school nutrition requirements, after a federal court this week vacated USDA’s 2018 rule to ease whole grain and sodium standards.
— Virginia senators asked USDA to approve the state’s request to let low-income families use their nutrition benefits online. A growing number of states are trying to narrow the social distancing gap for food stamp recipients who lack e-commerce options for buying groceries.
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DRIVING THE DAY

CORONAVIRUS HITS HOG FARMERS, PORK PROCESSORS: The National Pork Producers Council said Tuesday that the loss of foodservice customers, a drop in pork exports and a series of slaughterhouse closures across the country is wreaking havoc on the industry, writes Pro Ag’s Liz Crampton.

Farm economists with Kerns & Associates and Iowa State University estimate that hog farmers will lose nearly $37 per pig because of the market turmoil, adding up to about $5 billion for the rest of 2020. The shutdown of major processing sites like the Smithfield site in Sioux Falls, S.D., has caused a surplus of hogs, driving down their value.

“We are taking on water fast. Immediate action is imperative, or a lot of hog farms will go under,” said NPPC President Howard A.V. Roth. For example, the group is asking USDA to buy up more than $1 billion in pork products, helping to clear out the backed-up meat supply and to lift the financial pressure on producers. Those goods could be redirected to food banks, where demand is surging.

NPPC also wants “equitable” treatment for pork producers, without eligibility restrictions, under USDA’s upcoming farm stimulus program, which the department is expected to unveil as soon as this week.

POLITICO Pro is here to help you navigate these unprecedented times. Check out our new Covid-19 Coverage Roundup, which provides a daily summary of top Covid-19 news coverage from across all 16 federal policy verticals as well as premium content, such as DataPoint graphics.


TRUMP’S SCHOOL LUNCH ROLLBACK IN LIMBO: As school officials across the country scramble to serve meals to millions of students amid widespread closures, there’s a looming regulatory question: What nutrition standards will they have to follow next year?

A federal court decision on Monday potentially turned the landscape upside down. The court ruled that USDA’s 2018 rule to relax whole grain and sodium standards — which had been championed by former first lady Michelle Obama — violated the Administrative Procedure Act.

“This really puts the agency back at ground zero,” said Karianne Jones, a lawyer at Democracy Forward, the legal watchdog group that represented the Center for Science in the Public Interest and Healthy School Food Maryland in their lawsuit against USDA.

Cooking from scratch: If USDA wants to keep its policy, the department will likely have to start the rulemaking over, including soliciting comments, a process that usually takes years, Jones said.

What’s next? The government has 60 days to appeal the decision. A USDA spokesperson declined to comment on next steps, noting that the department doesn’t weigh in on pending litigation.

MORE STATES WANT IN ON ONLINE SNAP: Sens. Mark Warner and Tim Kaine are asking USDA to let Virginia join a handful of states where Supplemental Nutrition Assistance Program participants can use their benefits to buy groceries online. In a letter to the department, the Democrats said the pandemic is the perfect time to expand the pilot program, created by the 2014 farm bill, to help low-income families stay fed while staying home.

The pilot program designated eight states to test online SNAP purchases through designated retailers like Amazon and Walmart. But amid the coronavirus outbreak, other states have been asking USDA to join the program, and the department has already signed off on several requests.

Using SNAP benefits online comes with some technical hurdles, hence the initial test run in just a few states. But it also could go a long way toward helping the 42 million Americans who rely on food stamps to avoid going out and risking infection. Lawmakers and anti-hunger advocates have asked USDA to rapidly expand the program and relax restrictions surrounding e-commerce options for SNAP users.

TRUMP TAPS FOOD, FARM GIANTS FOR ECONOMIC GROUPS: The president on Tuesday named major food and agriculture executives to several “economic revival” panels advising the administration on how to “chart the path forward toward a future of unparalleled American prosperity” following the coronavirus pandemic, according to a White House notice.

The agriculture panel includes leaders of the American Farm Bureau Federation, Sysco Corporation, Tyson Foods, Perdue Farms, Cargill, Archer Daniels Midland, Corteva Agriscience, Tractor Supply Co., Seaboard Corp. and more.
There’s also a separate food and beverage industry panel, featuring execs from Coca-Cola, PepsiCo, Starbucks, McDonald’s, Chick-fil-A, Wendy’s, Waffle House, Papa John’s and more, along with chef and restaurateur Wolfgang Puck.

The Washington Post has more on the “economic revival industry groups.”

ROW CROPS

— Cash-strapped rural hospitals that were left out of a loan program in the coronavirus rescue package could run out of money just as the virus hits the heartland, writes Pro Health Care’s Rachel Roubein. A third of rural hospitals are owned by local governments, which precludes them from receiving small business loans, and lawmakers are now seeking a legislative or regulatory fix.
— The coronavirus will cause the worst global recession since the Great Depression nearly a century ago, the International Monetary Fund predicted Tuesday in its annual World Economic Outlook. The global economy is expected to contract by 3 percent in 2020, Pro Trade’s Adam Behsudi reports.
— The Treasury Department estimates 80 million Americans will receive their stimulus checks by today. So far, recipients are largely using the money to buy groceries and other essentials, according to Netspend, which processed nearly $1 billion in stimulus payments as of Monday. The Washington Post has the story.
— Cannabis companies in states where marijuana is legal should have access to federal stimulus loans, the United Food and Commercial Workers union wrote to the Small Business Administration last week. Pro Cannabis’ Natalie Fertig has the details.
— House Ag Chairman Collin Peterson wants USDA to move faster to get farm products to food banks. Food waste continues to be a widespread problem, while food banks face surging demand. Read the Minnesota Democrat’s letter to the department.
— Lilia McFarland Horder, former USDA acting chief of staff for departmental administration, has left the administration for Monument Advocacy and plans to register as a lobbyist, per POLITICO Influence.

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