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Posts Tagged ‘hog farmers’

Government Considers Buying Pork

Tuesday, December 8th, 2009

The National Pork Producers council (NPPC) asked the government to purchase $50 million of pork products for government assisted programs.

The USDA Undersecretary Michael Scuse said the USDA will decide by the end of November whether the government plans to take action or not.

Since September 2009 hog producers have lost $23 per hog marketed and according to the NPPC president, things are not going to get better.

“The department continues to evaluate pork market conditions and, if justified, (USDA) will initiate additional surplus removal purchases this fiscal year,” Scuse said.

During fiscal 2009 the USDA spent $164.6 million on 100 million pounds of pork for donations to food banks.

Many producers said they feel high feed costs are the reason for the current slump in the hog industry. Other factors include the H1N1 scare and lost of U.S. exports.

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Campaign Against Expansions

Tuesday, December 8th, 2009

The Campaign for Family Farms and the Environment is asking the USDA to suspend loans and loan guarantees that are intended to expand poultry and hog production.

The campaign sent a letter containing 25,000 signatures to USDA Secretary Tom Vilsack asking for a suspension much like the one that was made under President Clinton in 1999.

According to the letter hog farmers have been “looking at below-cost-of-production for two years now.” While the hog industry is a slump, economic experts believe the industry would overall have to cut breeding stock by 10 percent. However, so far three percentage cuts have been made.

Despite these swindling numbers, the Farm Service Agency has given up $264.4 million in loans for hog and poultry expansions.

Other groups that are involved include The Missouri Rural Crisis Center and Iowas Citizens for Community Improvement.

All groups agree that the freeze would not make producers unable to pay back debts, but in return help the struggling industry to get out of debt.

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