Livestock and poultry producers who suffered losses during the pandemic due to insufficient access to processing can apply for assistance for those losses and animal depopulation and disposal costs. U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced the Pandemic Livestock Indemnity Program (PLIP) during his speech at the National Pork Industry Conference in Wisconsin Dells, WI. The announcement is part of the USDA?s Pandemic Assistance for Producers initiative. Livestock and poultry producers can apply for assistance through the USDA?s Farm Service Agency (FSA) from July 20 to Sept. 17 of this year.
The Consolidated Appropriations Act, 2021, authorized payments to producers for losses of livestock or poultry depopulated from March 1, 2020, to December 26, 2020, due to insufficient processing access as a result of the pandemic. PLIP payments will be based on 80% of the fair market value of the livestock or poultry and for the cost of depopulation and disposal of the animal. Eligible livestock and poultry include swine, chicken, and turkeys; however, pork producers are projected to be the primary recipients of this aid.
?Throughout the pandemic, we learned very quickly the importance and vulnerability of the supply chain to our food supply,? Agriculture Secretary Vilsack said. ?Many livestock producers had to make the unfortunate decision to depopulate their livestock inventory when there simply was no other option. This targeted assistance will help livestock and poultry producers that were among the hardest hit by the pandemic alleviate some financial burden from these losses.?
The pandemic assistance proposed by the previous administration used flat rates across the industry, which did not take the different levels of harm felt by different producers into account. The pork industry supported analysis projected that disruptions in processing capacity in the pork supply chain can cause small hog producers, especially those who sell on the spot market or negotiate prices, to bear a disproportionate share of losses. The USDA examined the difference between the negotiated prices for hogs and the 5-year average and documented a significant drop from April to September of 2020 due to the pandemic. As a result, the USDA set aside up to $50 million in pandemic assistance funds to provide additional assistance for small hog producers who use the spot market or negotiate prices. Further details on the additional targeted assistance are expected to be available yet this summer.
Eligible livestock must have been depopulated from March 1, 2020, through December 26, 2020, due to insufficient processing access as a result of the pandemic. Livestock must have been physically located in the U.S. or a territory of the U.S. at the time of depopulation. Eligible livestock owners include persons or legal entities who, as of the day the eligible livestock was depopulated, had legal ownership of the livestock. Packers, live poultry dealers and contract growers are not eligible for PLIP.
PLIP payments compensate participants for 80% of both the loss of the eligible livestock or poultry and for the cost of depopulation and disposal based on a single payment rate per head. PLIP payments will be calculated by multiplying the number of head of eligible livestock or poultry by the payment rate per head, and then subtracting the amount of any payments the eligible livestock or poultry owner has received for disposal of the livestock or poultry under the Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) or a state program. The payments will also be reduced by any Coronavirus Food Assistance Program (CFAP 1 and 2) payments paid on the same inventory of swine that were depopulated.
There is no per person or legal entity payment limitation on PLIP payments. To be eligible for payments, a person or legal entity must have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017 and 2018.
Eligible producers can apply for PLIP starting July 20 by completing the FSA-620, Pandemic Livestock Indemnity Program application, and submitting it to any FSA county office. Additional documentation may be required. For more information on how to apply and a copy of the Notice of Funding Availability, visit farmers.gov/plip.
