Additional Aid from USDA has been Allocated for Ag Producers and Businesses Left Behind

Reading Time: 2 minutes

Funding recipients include timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE

As part of the USDA Pandemic Assistance for Producers initiative, it was announced that additional aid would be given to ag producers and businesses, with an intent to address gaps and disparities which resulted from previous aid programs. Agriculture Secretary Tom Vilsack said, “USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid.”  He added that these investments will help our food, agriculture and forestry sectors get back on track and plan for the future.

Breakdown of New Funding Allocations

Out of the $6 billion in funds available (as stated by the USDA in March 2021), here is the implementation plan within 60 days that will focus on those that need support most: Small, family-owned timber harvesting and hauling businesses:  $200 million Biofuels producers:  $700 million Dairy farmers and processors:

• $400 million: The new Dairy Donation Program to address food insecurity and mitigate food waste and loss
• Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance
• Approximately $580 million: Supplemental Dairy Margin Coverage for small and medium farms

Poultry and livestock producers left out of previous rounds of pandemic assistance:

•  Contract growers of poultry
• Livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020 through December 26, 2020)

Pandemic Response and Safety Grants for PPE and other protective measures to help specialty crop growers, meat packers and processors, seafood industry workers, among others: $700 million: Additional organic cost share assistance, including for producers who are transitioning to organic: Up to $20 million USDA is looking to long-term solutions to build back a better food system, and both the Department and Vilsack have expressed proactive commitments to deliver financial assistance to farmers, ranchers, and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. Should you have questions on USDA funding or applicability, contact a K·Coe Farm Program Services advisor.