USDA Pushes Pork Promotion Policies
July 28, 2016 at 4:25 p.m.
State pork producers can expect federal assistance to help them deal with record low market prices.
The remedial steps announced by U.S. Secretary of Agriculture Dan Glickman come on the heels of pleas for help by Gov. Frank O'Bannon, Lt. Gov. Joe Kernan and Rep. Steve Buyer (R-5th Dist.), citing a record supply of hogs and the economic crisis as only two of the contributing causes for the financial woes of Hoosier pork producers.
"There is a record supply of hogs at this time and pork producers have reached capacity in the Midwest region," O'Bannon and Kernan said in a joint letter to President Clinton and Glickman. "The result has caused market prices to drop to catastrophically low prices, many producers will be forced to leave the pork industry, thus creating a domino effect on other agriculture-related businesses."
Glickman announced he will meet with meat packers and processors to explore ways to increase hog slaughter facilities and provide more pork through the marketing system. He will also meet with retail food representatives to encourage them to push pork products in the market place and to lower pork prices to reflect the high supply.
One additional step praised by Buyer is the decision to allow borrowers from the Farm Service Agency to shift loan payments due in 1999 to the end of their loan period.
"The shifting of payments due in early 1999 to the end of the loan period is one of the most productive steps the USDA can make available," Buyer said. "Many pork producers, especially the most efficient, will be facing an equity crunch over the next several months. Extending their payment period will be a tremendous help to even the most efficient producers through this tough time."
To help address the over-supply, the USDA will also accelerate the purchase of $50 million in pork products for such food programs as the National School Lunch Program, buying more than 40 million pounds of pork by the end of February.
According to USDA figures, Indiana ranks fifth in the nation in pork production, supplying 6 percent of the nation's pork supply. [[In-content Ad]]
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State pork producers can expect federal assistance to help them deal with record low market prices.
The remedial steps announced by U.S. Secretary of Agriculture Dan Glickman come on the heels of pleas for help by Gov. Frank O'Bannon, Lt. Gov. Joe Kernan and Rep. Steve Buyer (R-5th Dist.), citing a record supply of hogs and the economic crisis as only two of the contributing causes for the financial woes of Hoosier pork producers.
"There is a record supply of hogs at this time and pork producers have reached capacity in the Midwest region," O'Bannon and Kernan said in a joint letter to President Clinton and Glickman. "The result has caused market prices to drop to catastrophically low prices, many producers will be forced to leave the pork industry, thus creating a domino effect on other agriculture-related businesses."
Glickman announced he will meet with meat packers and processors to explore ways to increase hog slaughter facilities and provide more pork through the marketing system. He will also meet with retail food representatives to encourage them to push pork products in the market place and to lower pork prices to reflect the high supply.
One additional step praised by Buyer is the decision to allow borrowers from the Farm Service Agency to shift loan payments due in 1999 to the end of their loan period.
"The shifting of payments due in early 1999 to the end of the loan period is one of the most productive steps the USDA can make available," Buyer said. "Many pork producers, especially the most efficient, will be facing an equity crunch over the next several months. Extending their payment period will be a tremendous help to even the most efficient producers through this tough time."
To help address the over-supply, the USDA will also accelerate the purchase of $50 million in pork products for such food programs as the National School Lunch Program, buying more than 40 million pounds of pork by the end of February.
According to USDA figures, Indiana ranks fifth in the nation in pork production, supplying 6 percent of the nation's pork supply. [[In-content Ad]]