Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Cattle Feeders Urge USDA to Remove Payment Limits for Cattle Producers Who Suffered Losses Due to COVID-19

Thu, 23 Apr 2020 05:41:26 CDT

Cattle Feeders Urge USDA to Remove Payment Limits for Cattle Producers Who Suffered Losses Due to COVID-19 The Texas Cattle Feeders Association has written U.S. Agriculture Sec. Sonny Perdue- calling on him to remove payment limitations on producers that have suffered extraordinary losses as a result of the COVID-19 pandemic.

“We are grateful for Sec. Perdue’s support of U.S. agriculture and the cattle industry during these unprecedented times, and appreciate USDA’s payment assistance,” Paul Defoor, TCFA chairman, said. “We understand that USDA is in the difficult position of allocating assistance levels for each segment of agriculture; however, the $125,000 payment limit per commodity fails to recognize the size and scope of the many cattle operations in Texas and across the nation. The proposed limit will preclude most cattle feeders in Texas, Oklahoma and New Mexico from receiving any meaningful assistance relative to their actual losses.”

Earlier this month, a study led by Dr. Derrell Peel with Oklahoma State University projected market losses of $13.6 billion for cattle producers — $247.15 per head
for cow-calf producers, $159.98 per head for stocker operators, and $205.96 per head for cattle feeders.

TCFA members annually market more than 6,000,000 fed cattle or 28% of the nation’s fed beef. Under proposed payment limitations, the average TCFA feedyard (35,000 head capacity) will recoup less than 1% of actual losses. In addition to feedyard losses, the average producer who owns and markets 2,500 head of cattle in a custom feedyard will recover less than 25% of their loss. A mere 600 head will hit the $125,000 payment limit.    

“Our industry is facing unprecedented times in the wake of market disruptions. While the relief is welcomed, the caps simply aren’t substantial enough
to stabilize the cattle feeding industry — an essential component of our nation’s food supply,” he said.

Current USDA disaster assistance programs, including the Emergency Assistance for Livestock andthe Livestock Indemnity Program, do not impose payment limitations due
to the extraordinary and unforeseen nature of producer losses.

“USDA has precedence for not establishing payment limitations on producers who have suffered extraordinary losses as a result of disasters. Disaster assistance in response to COVID-19 should be no exception,” Defoor said.

Click here to read the complete letter sent by TCFA to Secretary Perdue- and copied to the Oklahoma, Texas and New Mexico Congressional delegations.

You can also click on the PDF file below to see and save the letter as well.

Background on USDA Assistance

On April 19, 2020, USDA announced the $19 billion Coronavirus Food Assistance Program (CFAP). The program uses funds provided in the Coronavirus Aid, Relief, and
Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities.

The program provides $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted by COVID-19.

This includes $9.5 billion for the livestock industry, specifically $5.1 billion for cattle.

Source- TCFA     




WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Dr. Derrell Peel on How The Beef Markets can Move Past Disruptions   Mon, 01 Jun 2020 11:56:33 CDT
  • Cleaning on a Regular Basis is a Must in Offices as We Return to Workplace  Mon, 01 Jun 2020 09:45:18 CDT
  • California Scientist Believes Cattle Are Not Adding Extra Methane To The Environment  Mon, 01 Jun 2020 09:44:45 CDT
  • Lucas Praises Successful SpaceX Launch: This is a New Era of Space Travel  Mon, 01 Jun 2020 09:37:57 CDT
  • National Dairy Month to Recognize Dairy Farmers’ Commitment to Communities  Mon, 01 Jun 2020 08:37:06 CDT
  • New Thresholds, Familiar Program Helps Bull Buyer Narrow Options  Mon, 01 Jun 2020 07:33:28 CDT
  • Monday Preopening Market Update with Dave Lanning   Mon, 01 Jun 2020 07:04:56 CDT
  • Lucas Joins Colleagues Advocating Flexibility for Oklahoma’s Cattle Producers  Mon, 01 Jun 2020 07:01:47 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.