SMHPP provides assistance to hog producers who
sold hogs through a negotiated sale from April 16, 2020 through
September 1, 2020. Negotiated sale, or negotiated formula sale,
means 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. USDA is offering
SMHPP as packer production was reduced due to the COVID-19
pandemic due to employee illness and supply chain issues,
resulting in fewer negotiated hogs being procured and subsequent
lower market prices.
The Department has set aside up to $50 million in pandemic
assistance funds through the Coronavirus Aid, Relief and
Economic Security (CARES) Act for SMHPP.
SMHPP Program Details
Eligible hogs include hogs sold through a negotiated sale by
producers between April 16, 2020, and September 1, 2020. To be
eligible, the producer 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.
Contract producers, federal, state and local governments,
including public schools and packers are not eligible for SMHPP.
SMHPP payments will be calculated by multiplying the number of
head of eligible hogs, not to exceed 10,000 head, by the payment
rate of $54 per head. FSA will issue payments to eligible hog
producers as applications are received and approved.
Applying for Assistance
Eligible hog producers can apply for SMHPP starting December 15,
2021, by completing the FSA-940, Spot Market Hog Pandemic
Program application. Additional documentation may be required.
Visit farmers.gov/smhpp for a copy of the Notice of Funds
Availability, information on applicant eligibility and more
information on how to apply.
Applications can be submitted to the FSA office at any USDA
Service Center nationwide by mail, fax, hand delivery or via
electronic means. To find your local FSA office, visit farmers.gov/service-locator.
Hog producers can also call 877-508-8364 to speak directly with
a USDA employee ready to offer assistance.