Grassley Reminds Pork Producers to Visit Local FSA Office


Sign-Up Period for USDA Cash Assistance Runs Feb. 1-12


, DC -? Sen. Chuck Grassley today reminded Iowa pork producers hard- hit by the historical slump in the hog market to make plans to visit their local Farm Service Agency office within the next two weeks to apply for direct cash assistance being made available through the U.S. Department of Agriculture.

"I know a lot of pork producers in Iowa are reluctant to take government checks," said Grassley. "They work hard to earn a fair and honest living from the marketplace. Although this is a fairly modest-sized relief package, I'm glad it targets the small to mid-sized independent pork producer. Many farm families are struggling to make ends meet and maintain their farming operation during these tough times."

Last month, the USDA announced $50 million in federal funds would be made available to struggling pork producers. Grassley said farmers will be required to certify that they met the following eligibility requirements of the hog payment program:

  • Producers will receive up to $5 per hog or feeder pig sold during the last six months of 1998;
  • Producers will be eligible to receive payments for no more than 500 marketedhogs or feeder pigs, making the maximum payment $2,500 per farm operation;
  • Producers must have marketed fewer than 1,000 hogs or feeder pigs in the last six months of 1998 and still be in business to date; and,
  • Producers not eligible include those who marketed hogs under fixed price or cost-pluscontract agreements and/or any operation with a gross 1998 income exceeding $2.5million.

"Farmers can expect to receive payment in about two or three weeks after the sign-up period," said Grassley. "In December, hog farmers stared helplessly as prices dipped below 10 cents a pound. Although these payments won't make them break even, every little bit helps."

A member of the Senate Agriculture and Judiciary Committees, Grassley is exploring means to level the playing field for the independent producer, including mandatory price reporting, greater transparency in livestock contracting agreements, replenishment of guaranteed loan programs, better enforcement of the nation's anti-trust laws, and increased scrutiny of the impact agribusiness mergers will have on rural America and the independent, family farmer.

In addition, as chairman of the international trade subcommittee, Grassley continues to seek out new markets for American agriculture and break down unfair trade barriers around the world. Last month, he reached out to Chinese officials to open up China's markets to U.S. pork.

"American consumers have become accustomed to an affordable, quality product in their grocer's meat case," said Grassley. "Let's remember, generations of family farmers in Iowa have worked hard to deliver a high-quality, dependable food product throughout the 20th century. I'm working in Washington to see the federal government does its part to create an environment where the independent producer can make a good living in the global marketplace in the new century."