The U.S. Department of Agriculture (USDA) is accepting financial aid applications from farmers who report losses due to the COVID-19 epidemic and business shut-downs.
“The USDA is still working on the details and it’s a pretty complicated process to try to figure out how to allocate those payments across the various enterprises,” James Mintert, director of Purdue University’s Center for Commercial Agriculture, said on May 15 during an agricultural webinar.
USDA announced the program on April 17 after federal stimulus packages dedicated $19 billion in relief for farmers, according to the News and Tribune. Any eligible farmers that have suffered at least a 5% loss from the pandemic can apply as of May 26.
A full list of qualifying crops and livestock can be found at www.farmers.gov/cfap.
Webinar co-host Michael Langemeier said typically 35% to 40% of all corn produced in the nation is used in ethanol, meaning the demand for ethanol drives the demand for corn, according to the News and Tribune.
“On the crop side, anything we can do to get people traveling and using ethanol is going to really help corn,” Langemeier said during the webinar. “I’m not saying (states) need to open up their economy fast or anything like that. But it will help (corn) as the economy opens up.”
Farmers overall are reportedly pessimistic about the situation. Approximately 40% of farmers polled told researchers they were “very worried” about the virus’ impact on the profitability of their farms, according to the News and Tribune.
Most farmers identified market access as their biggest concern, followed by financial and health concerns.
Viral outbreaks in several meat packing plants have disrupted livestock farms, some of which now have no place to send animals ready for slaughter. But Langemeier and Mintert both said during the webinar a severe meat shortage is unlikely, adding that consumers could see instead a lack of variety in cuts of meat or a shift in availability.
USDA officials said $16 billion of the $19 billion in relief for farmers would be direct support for losses related to the coronavirus, while $3 billion would be used to purchase fresh produce, dairy and meat for food banks.