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.
Enter the number of eligible hogs sold between April 16, 2020 and September 1, 2020.
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.
Eligible producers can apply for SMHPP by working directly with the Farm Service Agency (FSA) office at their local USDA Service Center at the contact information above. Applications will be accepted via mail, fax, hand delivery, or electronic means.
In addition to the below forms, your FSA office will ask for supporting documentation to substantiate the number of hogs reported on the application. Examples of supporting documentation that may be requested include negotiated sale agreement, veterinarian records, feeding records, inventory records, rendering receipts, purchase receipts, and other records determined acceptable by FSA.
Alternatively, producers with an eAuthentication account may apply for SMHPP via FSA's SMHPP Application Portal. Applications will be completed, electronically signed, and submitted directly to your local USDA Service Center through this online system. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in to learn more.
A Spanish FSA-940 and instructions are also available.
Notice of Funds Availability: Spot Market Hog Pandemic Program
News Release: USDA Provides Additional Pandemic Assistance to Hog Producers (December 13, 2021)
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