The eligibility requirements have been updated for a U.S. Department of Agriculture program offering up to $50 million in pandemic assistance funds to help producers who sold hogs through a spot market sale during the COVID-19 pandemic, according to a March 17 news release.
The Spot Market Hog Pandemic Program’s definition of spot market sale and hog eligibility have been clarified, the release said.
“Since opening signup for the Spot Market Hog Pandemic Program, we have heard from stakeholders and interested parties who have expressed concern and confusion about eligibility criteria, particularly as they related to the definition of a spot market sale and the definition of an eligible hog,” USDA Farm Service Agency Administrator Zach Ducheneaux said.
The news release reported “hogs must be suitable and intended for slaughter. Immature swine (pigs) are ineligible." A spot market sale occurs when hogs are marketed for slaughter to an individual, through a negotiated sale or an intermediary interacting with the buyer for the seller, the program's website said.
Third-party intermediaries are now included in the program because the pandemic disrupted normal marketing channels to the point that the use of third-party intermediaries became the only marketing alternative for several producers, according to the release.
“The only direct to packer sales that are eligible for SMHPP are those through a negotiated sale,” the release said. “Hogs sold through a contract that includes a premium above the spot-market price or other formula such as the wholesale cut-out price remain ineligible.”
A part of the Pandemic Assistance for Producers initiative, the program assists producers who sold hogs through a spot market sale from April 16, 2020, to Sept. 1, 2020. This time period was when there was “the greatest reduction in market prices due to the COVID-19 pandemic,” the program’s website said.
“FSA will now require documentation to support the accuracy of information provided on the FSA-940 Spot Market Hog Pandemic Program application, including the number of hogs reported on the application that were sold through a spot market sale and how the price was determined for the sale,” the release said.
FSA will accept applications through April 29, which is an extension of the previous deadline of April 15.
