ARKANSANS IN line for farm aid.

USDA to distribute funds to help offset pandemic losses

Arkansas farmers, ranchers and others in a food chain disrupted by the coronavirus pandemic have received a few more details on agriculture aid approved last month by Congress, but no information yet on applying for the help.

Congress passed a $2.2 trillion package on March 27, leaving implementation to several federal agencies, including the U.S. Department of Agriculture.

President Donald Trump and Secretary of Agriculture Sonny Perdue held a news conference Friday night to give a few details on the aid to farmers. It will include direct payments, somewhat similar to those made in 2018 primarily to soybean farmers who sustained market losses in the U.S. trade war with China.

“This is welcome news for Arkansas farmers struggling with ongoing trade disputes and negotiations, the global pandemic and its economic impact, and ongoing weather challenges,” Andrew Grobmyer, executive vice president and spokesman of the Arkansas Agriculture Council, said Monday. “This aid is sorely needed and, unfortunately, more will likely be needed soon. Agriculture and rural communities are bracing for the future impacts of this virus as it continues to spread.”

Direct payments of $19 billion will be made, including $5.1 billion to cattle farmers, $2.9 billion to dairy farmers and $1.6 billion to hog farmers, according to a detailed accounting released later Friday night by U.S. Sen. John Hoeven, R-N.D., chairman of the Senate Appropriations agriculture panel.

Row-crop farmers will receive $3.9 billion. Growers of specialty crops, including fruits and vegetables, will receive $2.1 billion. That group

includes farmers who sell directly to farmers markets, now also closed because of the virus. Growers of “other” crops are set for $500 million.

“This has to be the biggest, or one of the biggest, programs the U.S. Department of Agriculture has ever been involved in, just because of the

sheer number of farmers that will be involved and affected,” said Matt King, an economist and national affairs director with Arkansas Farm Bureau.

The USDA also said it will buy $3 billion in farm products for distribution to food banks, faith groups and other nonprofits. The agency specifically noted it will buy $100 million each of meat, dairy and fresh produce each month.

‘There are still a lot more questions than answers right now,” King said. “I expect farmers will be able to apply by mid-May.” The USDA said payments could start going out in late May.

Arkansas grows more rice than any other state, but prices for that commodity have rebounded lately. That will likely make rice farmers ineligible to receive aid, King said. Damage of at least 5% has to be shown, he said.

King said producers will receive a payment based on price losses that occurred between Jan. 1 and April 15, with payments covering up to 85% of the losses. A second part of the payment will cover 30% of losses sustained from April 15 through the year’s next two quarters.

The USDA set a payment limit of $125,000 per commodity and $250,000 per individual or entity.

(Arkansas Democrat-Gazette/Thomas Metthe) A tractor plows through a field earlier this month on a farm near Hickory Ridge in Cross County. The first payments from a $19 billion aid package for farmers who have been hurt financially by the coronavirus crisis are expected to be delivered in May.