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·         U.S. Pork Losses from Trade Dispute with Mexico: $1.5 Billion

The National Pork Producers Council (NPPC) called for an end to a trade dispute that has cost U.S. pork producers an estimated $1.5 billion this year, according to Iowa State University Economist Dermot Hayes…

 

·         $19M paid to SD farmers only a 'Band-Aid' for tariff losses

… "Pork producers are being hurt bad, and this is a way to help," Hofer said of the bailout payments. "It isn't going to replace the money lost, but it might help pay your interest bills and some feed costs...

 

 

U.S. Pork Losses from Trade Dispute with Mexico: $1.5 Billion

 

Source: National Pork Producers Council

via Ag Net West - December 1, 2018

 

The National Pork Producers Council (NPPC) called for an end to a trade dispute that has cost U.S. pork producers an estimated $1.5 billion this year, according to Iowa State University Economist Dermot Hayes.

 

“We are very pleased with the new trade agreement with Mexico and Canada, one that preserves zero-tariff pork trade in North America for the long term,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “But, it’s imperative that we remove U.S. tariffs on Mexican metal imports so that retaliatory tariffs of 20 percent against U.S. pork are lifted.”

 

Dr. Hayes estimates that live hog values this year have been reduced by $12 per animal due to retaliatory tariffs imposed by Mexico against U.S. pork in June. The loss estimate of $1.5 billion is based on an expected total harvest of 125 million hogs in 2018. These tariffs, along with China’s retaliatory tariffs, have turned what promised to be a profitable year into a year of losses...

 

more

http://agnetwest.com/u-s-pork-losses-trade-dispute-mexico/

 

 

$19M paid to SD farmers only a 'Band-Aid' for tariff losses

 

By South Dakota News Watch

via The Daily Republic (SD) - Dec 1, 2018

 

South Dakota farmers recently received $19.4 million in payments from the federal government to offset losses due to an ongoing international trade war that has devastated two major agricultural industries in the state — soybeans and hogs.

 

A top state agricultural official said that the emergency payments may help some farmers survive the trade crisis, but he also called the bailout a "Band Aid" that won't begin to cover financial losses from the market disruption.

 

In all, 2,895 farmers or farm operators in South Dakota have received payments through the Market Facilitation Program approved by Congress this fall to help farmers weather the ongoing trade dispute. The payment information was obtained from the U.S. Department of Agriculture by the Environmental Working Group.

 

While two South Dakota farm operations received more than $200,000 in payments, most farmers received far less.

 

A News Watch analysis of the bailout data shows that 91 percent of the payments to individual farmers in South Dakota were less than $20,000, and 70 percent, or 2,025 recipients, received less than $10,000. As of Oct. 31, the program provided nearly 88,000 American farmers with more than $355 million in emergency payments...

 

... Ferlyn Hofer, a hog producer from Canistota, estimates he lost more than $70,000 in revenue during the two-month period around Labor Day when the Chinese tariffs sent pork prices plummeting. Hofer said he and other producers would typically receive about $130 to $150 per hog sold in the fall depending on its finished weight. The break-even price on a hog is around $110, yet after the tariffs kicked in, Hofer said the price had fallen to $60 to $70 per head.

 

"Pork producers are being hurt bad, and this is a way to help," Hofer said of the bailout payments. "It isn't going to replace the money lost, but it might help pay your interest bills and some feed costs."

 

Hofer had about 4,000 hogs during the time period allotted for the bailout, so at $4 per head, he received an MFP payment of $17,304. He has also applied for a soybean payment but has not received word yet on that application.

 

"We're not making any money off this, but it helped pay the bills for a couple months there," Hofer said.

 

About a quarter of the hogs raised in South Dakota are exported to other countries, with China a major market, Hofer said. As the tariff dispute drags on, Hofer said pork producers are trying to break into new markets such as South Korea, which holds promise as a future destination for American pork products. He said hog prices have rebounded in the months since they bottomed out this fall.

 

Applying for a payment was fast and easy with just a two-page application, and the payments were processed quickly, said Hofer, president of the South Dakota Pork Producers Council.

 

Getting money to farmers fast was a major goal of Congress when it enacted the bailout program, said Logan Kopfmann of Huron, agricultural program specialist for the USDA Farm Services Agency which is administering the MFP program...

 

more

http://mitchellrepublic.com/business/agriculture/4536363-19m-paid-sd-farmers-only-band-aid-tariff-losses