BLUE EARTH, MN (KELO.com) – Congressman Jim Hagedorn (MN-01) issued the following statement in response to the Trump administration’s decision to provide $19 billion to America’s farmers and ranchers who have been impacted by COVID-19:
“The agriculture relief package announced by President Trump and Agriculture Secretary Sonny Perdue this evening is a much needed first step to help farmers and agri-businesses overcome the pause in our economy due to the coronavirus. I am pleased the Food Assistance Program includes direct food purchases and other solutions I have offered Secretary Perdue over the past several weeks.
“Prior to the coronavirus, southern Minnesota’s farmers and agri-businesses were increasingly optimistic. Passage of the USMCA trade deal, signing of the Phase One pact with China, and new agreements with Japan and other nations were opening up markets and creating demand. Dairy operations were profitable again and farmers were looking forward to our early spring and likely great growing season.
“I appreciate the administration’s intent to purchase $3 billion of meat, dairy and fresh produce for distribution to the American people via food banks and other organizations. This will help feed our neighbors and reduce the short-term excess food supply that is destroying agriculture markets.
“While specific details of the $14.5 billion in Commodity Credit Corporation payments are not yet available, I am hopeful our livestock farmers will be first in line for assistance.
“With restaurants closed and demand for fine cuts of meat dramatically lower, the livestock markets have fallen through the floor. Hog farmers are losing as much as $50 a head, while cattlemen are losing more than $300 per steer. Meanwhile, some packing plants are closed or operating under reduced capacity, which could lead to the destruction of livestock. Make no mistake, livestock operators are on the brink.
“While specific details of the $16 billion in direct Commodity Credit Corporation payments to America’s farmers are not yet available, I am hopeful our livestock farmers will be first in line for assistance.
“With restaurants closed and demand for fine cuts of meat dramatically lower, the livestock markets have fallen through the floor. Hog farmers are losing as much as $50 a head, while cattlemen are losing more than $300 per steer. Meanwhile, some packing plants are closed or operating under reduced capacity, which could lead to the destruction of livestock. Make no mistake, livestock operators are on the brink.
“Had Speaker Pelosi and the Democrats not stripped $20 billion in agriculture funding out of the CARES Act, the agriculture package would have been far more substantive. I don’t know what the speaker was thinking, but I do know how her actions have hurt our farmers.
“I support providing additional resources and will work with my House Agriculture Committee colleagues to gain more relief for farmers, who are facing losses through no fault of their own. I will also continue working directly with Secretary Perdue and USDA on my market-based Livestock Risk Protection Plan to mitigate pork and beef losses.
“Sustaining agriculture is critically important to our economy and rural way of life. It is also imperative to maintaining our food supply, which is a matter of national security.”
(The office of Minnesota Congressman Jim Hagedorn contributed this report.)
