On Wednesday, the Commodity Futures Trading Commission (CFTC) Agricultural Advisory Committee (AAC) held a public meeting to focus on the COVID-19 pandemic and its impact on American agricultural markets. At the beginning of the meeting, United States Department of Agriculture (USDA) Secretary Sonny Perdue addressed the group about the progress being made at his agency to help farmers at this time.
Secretary Perdue talked about the impact COVID-19 has had on demand for food products. With the slow down of restaurants and foodservice, we have lost half of our market share, or better. Perdue likened it to a wreck on the freeway; everything backs up behind it.
Secretary Perdue addressed the question of when the direct assistance payments to farmers, authorized last week, will start coming to farmers. This process will take time with all the rulemaking that has to be done.
Perdue says he hopes to see the commodity purchases starting in the next two weeks.
Secretary Perdue also addressed the investigation into the practices of meatpackers during this time. This is an extension of the Agricultural Marketing Service (AMS) investigation of the Holcomb, KS packing plat fire. Perdue says if any wrongdoing is found, appropriate actions will be taken.
