Editor’s note: As of Friday, May 15, the HEROES Act passed the House of Representatives (208-199) and will move onto the Senate.
Another $3 trillion coronavirus stimulus package has been introduced into the House of Representatives, designed to boost state and local governments, pay hazard pay to essential workers, and provide another round of cash payments to individuals.
There are also provisions for agriculture included in the bill, the most noteworthy being $16.5 billion in direct farm payments.
HEROES Act
The Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, was introduced in the House of Representatives May 12 by Rep. Nita Lowey (D-NY-17). The bill has 11 democratic cosponsors.
The House was scheduled to return to Washington, D.C. Friday, May 15, after WLJ press time, to vote on the omnibus bill.
However, if the bill passes the House, it is likely to receive pushback from the Senate and is unlikely to move forward in its current form. Senate Majority Leader Mitch McConnell told reporters at the Capitol, “I don’t think we have yet felt the urgency of acting immediately,” and that Congress needs to pause and consider the debt already amassed by the previous coronavirus aid legislation.
This bill marks the fifth round of coronavirus aid, the most recent being the Paycheck Protection Program (PPP) and Health Care Enhancement Act enacted on April 24.
The Senate will likely not consider the bill until after Memorial Day if it passes through the House.
What’s included for ag
A total of $16.5 billion would be paid directly to producers of livestock, specialty crops, and other commodities to cover losses directly related to the COVID-19 pandemic. Payments would be calculated first by eligibility in USDA’s Coronavirus Food Assistance Program (CFAP), which is still being finalized for details and eligibility.
Those ineligible for CFAP, but impacted by COVID-19, shall receive payments equal to 85 percent of the actual losses estimated by the secretary of agriculture for the first and second quarters of 2020. Payments would be given within 60 days of the bill’s enaction.
The HEROES Act would also establish a livestock dealer trust fund to ensure that livestock producers making cash transactions are paid for their animals. In addition, producers would be provided payments for livestock and poultry that are depopulated due to processing plant shutdowns. Payments cannot exceed the average market value and packer-owned animals are not eligible for payments.
The bill also amends the Commodity Credit Corporation (CCC) Charter Act to provide assistance to processing plants to assure continuation of markets for ag commodities.
The bill would also provide $300 million to support improved animal health surveillance and lab capacity through the farm bill Animal Disease Prevention and Management Fund.
The dairy sector would receive $500 million to pay for milk to be processed into dairy products to be donated to nonprofits. The bill would allow USDA to adjust the current Milk Donation Program payments to match the level of payment provided by the new, temporary program.
Cash flow assistance would also be given to small and mid-sized dairies that have grown over the last seven years by establishing supplemental margin coverage based on the difference between 2018 actual production and Dairy Margin Coverage production history.
An additional $500 million would be provided for a Dairy Recourse Loan Program for USDA to make purchases of dairy products. The bill would also reward producers who participate in the Dairy Margin Coverage program by providing a payment worth 15 percent of annual premium costs.
In addition to coverage for livestock producers, the bill would provide $500 million in funds to support local farmers markets, $50 million to beginning farmers and ranchers, $28 million for farm stress programs, $100 million for specialty crop producers, and funding for nutrition programs and a soil health conservation program.
In terms of other support, the HEROES Act would send another round of direct checks to Americans, extend the additional $600 a week in unemployment through 2020, add more money for small businesses in the PPP and the Economic Injury Disaster Loan programs, add funding for the U.S. Postal Service and voting-by-mail, and allocate large sums of money for each level of government.
If you’re a producer who may have been impacted by the COVID-19 pandemic, it’s a good idea to start gathering your financial records to be ready to apply for any funding you may be eligible for. — Anna Miller, WLJ editor
