Spot Market Hog Pandemic Program (SMHPP)

Do you raise hogs that were sold through a negotiated, or negotiated formula, sale? You may be eligible for assistance for hogs sold through a negotiated sale from April 16, 2020, through September 1, 2020, through USDA’s Spot Market Hog Pandemic Program (SMHPP). This new program is part of USDA’s Pandemic Assistance for Producers initiative. 

The USDA defines a "Negotiated Sale" or "Negotiated Formula Sale" to mean a sale of hogs by a producer to a packer under which the base price for the hogs is determined by seller-buyer interaction and agreement on a delivery day.

To be eligible for SMHPP, an applicant must:

• Be a person or legal entity who has ownership in the hogs and whose production facilities are located in the United States, including U.S. territories. Please note that contract producers; federal, state, and local governments, including public schools; packers; and producers for hog purchases through all other purchase types are not eligible for SMHPP. Ineligible purchasing types may include other market formula, swine or pork market formula, other purchase arrangements, and packer owned.

• Have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017, and 2018.

• Comply with provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions. 

• Not have a controlled substance violation.

• Be a citizen of the United States or a resident alien.

USDA will calculate SMHPP payments by multiplying the number of head of eligible hogs, not to exceed 10,000 head, by the payment rate of $54 per head. You may use the following equation for this calculation:

Expected SMHPP Payment = # Eligible Hogs Sold from April 16, 2020 through September 1, 2020 x $54

There is no per person or legal entity payment limitation on SMHPP payments. FSA will issue payments not to exceed 10,000 head per producer to eligible hog producers as applications are received and approved. 

• Frequently Asked Questions

• Notice of Funds Availability: Spot Market Hog Pandemic Program 

• Spot Market Hog Pandemic Program Fact Sheet

• Stakeholder Toolkit: Spot Market Hog Pandemic Program

• USDA’s Pandemic Assistance for Producers Initiative  

• News Release: USDA Provides Additional Pandemic Assistance to Hog Producers (December 13, 2021)

• SMHPP Application Portal User Guide