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Hagedorn proposal aims to support livestock markets through pandemic
A Minnesota Congressman and member of the House Agriculture Committee is asking USDA to adjust a livestock marketing tool to help cattle and hog producers get through the pandemic.
Republican Jim Hagedorn says expanding coverage of the Livestock Risk Protection Plan would minimize the impact of COVID-19.
“You’d go back to a point before this pause in our economy began and you take a three or five-year average of production costs, and from that point forward as you sold into the market, you’d get that difference. And the reason I think that works best is because when the market rebounds, then there won’t be a need to pay out.”
He tells Brownfield through no fault of their own, cattle and hog farmers are on the brink as markets drop through the floor.
Hagedorn suggests this policy could also be a solution during future market dips.
“Something like an outbreak of African swine fever, we hope that never happens, but if it does we have to have a way to mitigate losses to keep our producers in business.”
He says the proposed LRP adjustments would be temporary to avoid long-term artificial market distortion.
