USDA asked to stop supporting hog expansion
Posted: 10/28/2009




More than 25,000 family farm supporters have signed a letter going to USDA Secretary Tom Vilsack, asking the USDA to suspend loans and loan guarantees that are used to expand hog and poultry production, Agriculutre Online reports.

"Hog farmers have been looking at below-cost-of-production prices for two years now," said Rhonda Perry of the Missouri Rural Crisis Center, in the article. As the hog industry was entering an economic slump, ag economists predicted the industry would have to cut breeding stock by about 10 per cent, Perry said. So far, it has cut back by about three per cent.


Yet, during the 2008 and 2009 federal fiscal years, which end September 30, FSA has made $264 million in loans for expansion of hog and poultry production.


Suspending these loans would not affect the ability of producers to refinance troubled debt, the groups say, adding that it doesn't make sense to expand production when prices are depressed and at a time when USDA is already buying large amounts of poultry and pork for school lunch programs.


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