President Trump signs omnibus spending, Covid-19 relief bill
https://brownfieldagnews.com/news/president-trump-signs-omnibus-spending-covid-relief-bill/
- On Sunday night, President Trump signed the bill that funds the government and will provide a third round of coronavirus relief payments.
- The bill includes a billion dollars to compensate farmers and ranchers who were forced to depopulate their livestock because of the pandemic.
- Losses will be paid up to 80 percent of an animal’s value.
- Row crop farmers will receive $20/acre for the same qualifying crops as the last round of CFAP-2.
- According to the American Farm Bureau, this new aid will amount to almost $1.8 billion for corn, $1.7 billion for soybeans and approximately $866 million for wheat.
- Through this new bill the USDA will be able to extend the term of marketing loans by three months, it will provide aid for biofuel producers who have been affected by market losses and it will also extend the Paycheck Protection Program (PPP).
- PPP funding can now be used to cover Covid-19 costs and expenses paid with PPP money are tax deductible.
- Dairy producers will benefit from the bill as almost a billion dollars has been set aside for a dairy donation program and supplemental Dairy Margin Coverage payments.
- Additionally, $22 million will be available to support dairy business innovation initiatives.
- The price tag for this bill is $1.4 trillion for the fiscal year 2021, including $900 billion for coronavirus relief.
NCBA’s ‘price discovery’ plan takes effect January 1; packer participation still a work in progress
- NCBA’s voluntary plan to increase price discovery in the cattle industry takes effect on January 1st.
- This voluntary “75 percent plan” focuses on benchmarks for negotiated cash trade and packer participation.
- The plan contains triggers that must be met, or the organization plans to pursue a legislative or regulatory solution to achieve robust price discovery.
- According to NCBA’s Ethan Lane, the packer participation portion in the plan is still a work in progress.
- NCBA has been appreciative of the packers listening to what the organization has to say and they believe that the packers know that they need a play a role in their plan.
- Lane stated that the biggest hurdle is the confidentiality rule that USDA must adhere to, as far as what they can release.
- He said that the organization is working with the packers to find a sweet spot where they can get the information they need and also communicate out what they think is needed as far as participation in those different regions to have robust, negotiated trade.
- Lane believes that the packers recognize the frustration in the industry and would like to figure something out. Packers and producers are in the supply chain together, but everyone is looking out for their own business in a deal like this. Regardless, Lane thinks that everybody is currently working toward the common good for our industry.
- This voluntary “75 percent plan” focuses on benchmarks for negotiated cash trade and packer participation.
Boxed beef prices
- Choice boxed beef: $207.82 (+0.28)
- Select boxed beef: $196.65 (-1.28)