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USDA buys $30 million of pork to help farmers

By MEGGIE. I. FOSTER
Assistant Editor

INDIANAPOLIS, Ind. — Last week, U.S. Agriculture Secretary Tom Vilsack lent a much-needed helping hand to struggling American pork producers with his move to purchase up to $30 million of pork products for various federal food assistance programs.

“The pork purchase being made by USDA will be a big help to the pork producers in Indiana,” commented Michael Platt, executive director of Indiana Pork. “We’re pleased that Secretary Vilsack has taken this important first step to help the Indiana pork industry, which contributes over $3 billion to the state economy and over 13,000 jobs.”

The announcement, according to Platt, follows a series of letters and requests made by pork producers and agriculture officials from across the country in the past several months, including Indiana Gov. Mitch Daniels and U.S. Sen. Tom Harkin (D-Iowa).

“Today’s (Sept. 3) announcement comes at a crucial time.  Pork producers in Iowa – and across the country – are struggling because of greatly depressed pork prices, a weak economy and unfair export trade restrictions,” said Harkin, who serves as the chairman of the Senate Committee on Agriculture, Nutrition and Forestry. “I applaud Secretary Vilsack and the Administration for taking action to help these producers. The purchase of additional pork products will give much needed help to this suffering industry.

In the past several weeks, Harkin claims to have strongly encouraged USDA to take steps such as purchasing more pork to help pork producers fighting to survive historically-low hog prices.
Indiana Pork confirmed that since September 2007, the pork industry has seen producers losing an average of more than $21 on each hog marketed.

Overall, the industry has lost more than $4.6 billion in equity over the past two years, and is now facing a treacherous economic crisis. In Indiana, that translates to $336 million of lost revenue in the past two years, Platt said.

In an effort to aid Indiana’s hundreds of edgy pork producers, on Aug. 7 Gov. Daniels submitted a letter to President Barack Obama highlighting the Daniels Administration’s deep concern about the financial condition of the pork industry.  Citing the industry’s positive impact on the Hoosier state, the letter encouraged the President to act to ensure the competitiveness of pork producers worldwide including lifting any barriers to trade that may have been linked to unwarranted concerns about the H1N1 virus.

Not alone in the effort, on Aug. 17, the National Pork Producers Council also mailed a letter to Vilsack urging him to consider immediate action to address the crisis. The Sept. 3 announcement from Vilsack’s office is part of the package.

The $30 million gift will not only help ailing pork producers, but also provide additional resources for federal food assistance efforts.
“Many low-income and jobless families, children and seniors rely on this assistance to have access to quality, nutritious food,” said Harkin. I believe we must respond to the need to provide adequate resources for food assistance.

9/9/2009