Help for Producers on the Way

There have been several recent developments in efforts to protect American farmers and ranchers and ensure the food supply in the United States.

Ranchers and cattle producers especially have been hardhit by low prices paid by meat packers for animals on the hoof coupled with low supply at the grocery store driving consumer prices higher. That low supply is a result of processing plant closures because workers are infected with the Covid-19 virus and plant inability to convert processing lines from restaurant and food supply breakouts of carcasses to those for grocery store sales. An additional pressure is that consumers are heeding stay home orders and spending less time and money selecting groceries.

Additionally, concerns have been raised because at least two of the four remaining major packers are foreign owned.

Congressman Frank Lucas of Oklahoma’s third district and Ohio Congresswoman Marcia Fudge introduced an act in the Legislature to formally place the United States Secretary of Agriculture on the Committee on Foreign Investment in the United States. The act would ensure that the committee is operating effectively to determine if a transaction threatens the national security of the United States.

The committee looks at the potential for security threats when foreign investment takes place in the U.S., including in businesses that directly impact the food supply.

Perhaps more readily recognizable is the Coronavirus Food Assistance Program to assist producers and consumers. The $19 billion program provides immediate relief to producers.

Of that figure, $16 billion will got to direct support based on actual loss to the producers whose markets have been disrupted by lost demand, predominantly in the restaurant industry.

The USDA has also announced it will join with regional and local distributors dealt a significant blow by food service providers such as restaurants, schools, universities and hotels to purchase $3 billion in fresh produce, meat and dairy products. The distributors and wholesalers will send pre-approved boxes of the fresh items to food banks, community and faith-based organizations and non-profits serving those in need.

The department will utilize other funding- up to $873 million - to purchase a variety of agricultural products for distribution to food banks. This is determined by industry request, market analysis and food bank needs and product availability.

Connie Burcham can be reached at Editor@WatongaRepublican.com