Five billion dollars. That's how much U.S. pork producers are forecasted to lose in 2020 — the year of the COVID-19 pandemic, supply chain disruptions and emergency depopulation. When you break it down, that equates to a loss of $37 per head — caused by harvest facility disruptions that have forced prices to plummet.

In a nutshell, the most advanced pork production system in the world is facing the threat of long-term disruption, inevitable farm bankruptcies and, ultimately, higher prices for consumers. The U.S. pork industry needs a lifeline — and there's no better time than the present.

As the executive vice president of the Ohio Pork Council, I have witnessed firsthand the COVID-related struggles of the pork industry across the United States. Smart businesspeople, passionate pig caretakers and good people are being knocked down not only financially — but mentally, as well. Farming is not for the faint of heart. Every morning, farmers wake up early, grab a coffee, and go forth to tackle the work of the day. Over the years, they have bravely faced many obstacles that most people would never get out of bed to withstand. Yet, the magnitude of the disruption to the pork supply chain leaves pig farmers encountering daily decisions they never dreamt of making — having to euthanize animals that won't make it into the food supply chain, going against every farmer instinct.

Unlike past down cycles, the COVID-related problems are lingering, widespread and not easy to solve. For many, this just might be the final blow that knocks them out of farming for good.

The U.S. pork industry has endured more trauma than triumph in 2020. However, Congress can help hog farmers survive this unprecedented crisis. The National Pork Producers Council is urging Congress to pass COVID-relief legislation which:

In addition to compensating hog farmers who are forced to euthanize or donate animals that can't be processed into the food supply due to COVID-related bottlenecks at the packing plants, it's very important that CCC is revised so pandemic-related national emergencies qualify for funding. The Coronavirus Food Assistance Program has certainly assisted farmers, but we need this revision to the CCC charter. While the CCC, along with the Coronavirus Aid, Relief and Economic Stability Act have been included in CFAP funding, compensation has only covered market disruptions and price losses, respectively. However, producers have not received adequate funding for the financial ramifications associated with the backlog on farms — which is a huge shortfall for pork producers across the country.

Additionally, while extremely beneficial to many small businesses and corporations in the United States, the PPP is another shortfall for many pork producers. Under current language, PPP eligibility is determined by net profit taken from the 2019 IRS Schedule F form. What many may not realize is that for many U.S. pork producers, 2019 was not profitable — as the industry bore the brunt of the trade retaliation in China and Mexico. We need federal lawmakers to revise the language to include producers filing a Schedule F to use their 2019 gross income — up to $100,000 — when calculating their PPP loan, rather than net income.

In an industry that has already faced financial disaster, coupled with a looming $5 billion loss for the year, immediate Congressional help is needed, or else thousands of farmers could go out of business, leading to consolidation and contraction of the U.S. pork industry.

Ohio is the eighth-largest pork producing state in the country, and I speak on behalf of the state's pork producers in urging Congress to provide significant help to U.S. pork producers in the next COVID relief package.

Ohio Pork Council serves 2,500 farmer members.

Source: Cheryl Day, who is solely responsible for the information provided, and wholly owns the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. The opinions of this writer are not necessarily those of Farm Progress/Informa.