SPRINGFIELD, Ill. — Washington, Illinois, pig farmer Curt Zehr had a question or two for the new Illinois FSA State Director, Scott Halpin, and his staff about the USDA’s Spot Market Hog Pandemic Program (SMHPP), starting with what the heck is going on?

Zehr came to the 2022 Illinois Pork Producers Association annual meeting on February 22 anxious for answers as to the status of the program, which was created to reimburse U.S. hog farmers for losses suffered through negotiated sales from April 16, 2020 through September 1, 2020; the period during which producers faced pandemic-related low prices for their hogs. Reportedly, the USDA program’s allotment of $50 million for payments for the program’s pandemic-related assistance was quickly surpassed by pig farmers across the U.S., with Illinois producers submitting a reported $20 million in grant requests alone. Another problem lies with USDA’s definition of “spot market sale” criteria that determine program approval and payments, an issue that Halpin said the USDA is working to clarify. 

But Zehr and other producers in attendance were far from finished with their questions about the program.“If it is decided that pigs we put onto that application aren’t eligible, are we going to be able to adjust that, or are you going to just reject it?” asked Zehr.

‘“If clarifications come out and you discover that some of the pigs you put on there do not qualify, you would have an opportunity to revise your application,” Halpin answered. 

“I’m also having trouble with how you are defining ‘negotiated price,’” Zehr continued. “You guys need to get your ducks in a row, because this is a mess. It looks like somebody was trying to make some points with pork producers and now they don’t know what’s going on.”

Halpin responded that in moving forward an extra effort would be made to improve “lines of communication” between the state FSA office and pork producers concerning SMHPP.

“I’m probably overstepping here, but we talked Friday in the office about how normally when there are changes there are opportunities to adjust these things,” he said. “We’re very aware of this, and our office is trying to get the information back to you folks as fast as we can. We’re just working with the rules we’re given right now, but we’re going to do our best to try to keep communications open and get the information back to you folks.”

Another Illinois pork producer asked Halpin what sort of legislative mechanisms it might require to put more money into SMHPP. The onus would be on agricultural associations to “get together” and lobby elected officials to add funding to the existing program, the FSA director replied. “I would suggest you do whatever you can from that angle,” said Halpin.

Illinois FSA staff member Vicki Donaldson recommended that any producers who are on the fence about applying for the program should go ahead and do so. “If you believe that you have hogs that are eligible, having the application turned in is the thing that is the most critical so that regardless of whether policy or procedure changes, you have made your application. We can’t stress that enough,” she said. 

Also attending the IPPA annual meeting as a guest presenter, National Pork Producers Council CEO Bryan Humphries took the microphone to say that the national council is working with USDA-FSA to effect changes to SMHPP. “We’re not trying to beat FSA over the head with this, but rather trying to help them better understand the industry and the challenges we faced in 2020, along with where the opportunities to improve this program are,” he said. “We are asking that the application period be extended and that producers are allowed to amend their applications. We did also ask for additional funding.” 

Two days after the IPPA annual meeting, USDA extended the deadline for SMHPP until April 15, 2022; the original deadline was February 25. However, no mention was made of the funding issue.

“In response to stakeholder feedback and our analysis of the program to date, we will be making adjustments to clarify the definition of a spot market sale and to hog eligibility, while including documentation requirements to prevent erroneous payments,” said FSA Administrator Zach Ducheneaux. “We’ll be announcing those updates soon and want to assure hog producers that there will be ample time to submit their applications for assistance.”

According to the news release, eligible hog producers can apply for SMHPP by completing the FSA-940, Spot Market Hog Pandemic Program application. Visit farmers.gov/smhpp to learn more.