Indiana Ag Connection - USDA Agrees to Help Indiana Pork Farmers

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USDA Agrees to Help Indiana Pork Farmers
Indiana Ag Connection - 09/04/2009

Indiana Pork Thursday praised U.S. Agriculture Secretary Tom Vilsack for his decision to lend assistance to the U.S. pork industry to help it weather a nearly 2-year-old economic crisis that has put some producers out of business.

The U.S. Department of Agriculture agreed to purchase up to $30 million of pork products, which will be used for various federal food programs. Secretary Vilsack, who heard from hundreds of hurting pork producers, announced the pork buy today.

"The pork purchase being made by USDA will be a big help to the pork producers in Indiana," said Michael Platt, Indiana Pork Executive Director. "We're pleased that Secretary Vilsack has taken this important first step to help the Indiana pork industry, which contributes over $3 billion to the state economy and over 13,000 jobs."

Since September 2007, the pork industry has seen producers losing an average of more than $21 on each hog marketed. The industry has lost more than $4.6 billion in equity over the past two years, and is now facing an economic crisis. In Indiana, that translates to $336 million of lost revenue in the past two years.

An Aug. 7 letter from Indiana Governor Mitch Daniels to President Obama highlighted the Daniels administration's deep concern about the financial condition of pork industry. Citing the industry's positive impact on the Hoosier state, the letter encouraged the President to act to ensure the competitiveness of pork producers worldwide including lifting any barriers to trade that may have been linked to unwarranted concerns about the H1N1 virus.

In an Aug. 17 letter to USDA Secretary Vilsack, the National Pork Producers Council urged USDA to take immediate action to address the crisis. The purchase announced today is a part of the total package.