Title: To provide Federal relief to hog producers, especially family farmers and independent producers, who have been forced to euthanize hogs due to the COVID-19 pandemic, and for other purposes.
Policy area: Agriculture and Food

Summary:
This bill directs the Department of Agriculture (USDA) to use the funds of the Commodity Credit Corporation to provide emergency relief to hog producers to aid in the reduction of intentional depopulation losses of market-ready hogs due to the closure or the reduction in processing capacity of a processing plant related to the COVID-19 (i.e., coronavirus disease 2019) pandemic.
USDA may not make a payment for the losses of market-ready hogs unless a veterinarian certifies that such hogs are market-ready hogs, and the number of such hogs for which the hog producer claims a loss. Additionally, USDA may not make payments for (1) any hog losses for which the hog producer does not provide sufficient documentation of ownership; (2) the losses of packer-owned hogs; or (3) the losses of hogs of a producer that is owned, in whole or in part, by any person who is not a U.S. citizen, lawful permanent resident, or entity.
The bill applies for the period beginning on April 1, 2020, and ending on the date that national processing capacity of hog processing plants is equal to or greater than such capacity was on February 1, 2020.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7051 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7051

 To provide Federal relief to hog producers, especially family farmers 
 and independent producers, who have been forced to euthanize hogs due 
           to the COVID-19 pandemic, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 28, 2020

 Mr. King of Iowa introduced the following bill; which was referred to 
                      the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 To provide Federal relief to hog producers, especially family farmers 
 and independent producers, who have been forced to euthanize hogs due 
           to the COVID-19 pandemic, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EMERGENCY ASSISTANCE FOR MARKET-READY HOG LOSSES.

    (a) In General.--The Secretary shall use the funds of the Commodity 
Credit Corporation to provide emergency relief to covered producers to 
aid in the reduction of intentional depopulation losses of market-ready 
hogs due to the closure or the reduction in processing capacity of a 
processing plant related to the COVID-19 pandemic.
    (b) Payment Rate for Covered Producers.--In the case of a closure 
or the reduction in processing capacity of a processing plant related 
to the COVID-19 pandemic, with respect to the losses of market-ready 
hogs due to such closure or reduction incurred by a covered producer, 
the Secretary shall reimburse--
            (1) for the first 50,000 hogs of such covered producer, 70 
        percent of the cost of such losses of such covered producer;
            (2) for up to 50,000 hogs in addition to paragraph (1), 55 
        percent of the cost of such losses of such covered producer;
            (3) for up to 100,000 hogs in addition to paragraphs (1) 
        and (2), 45 percent of the cost of such losses of such covered 
        producer; and
            (4) for any amount of hogs in addition to paragraphs (1), 
        (2), and (3), 35 percent of the cost of such losses of such 
        covered producer.
    (c) Valuation.--In determining the amount of losses for purposes of 
the payment rates under subsection (b), the Secretary shall use the 
average weekly price (as determined by the Secretary) for a market-
ready hog, as determined by the Secretary. In no case shall the 
payments made under subsection (b) with respect to the losses of a 
covered producer exceed the actual market value of market-ready hogs on 
the day on which the covered producer began to suffer such losses.
    (d) Verification.--The Secretary may not make a payment for the 
losses of market-ready hogs of a covered producer under subsection (b) 
unless a veterinarian certifies--
            (1) that such hogs are market-ready hogs; and
            (2) the number of such hogs for which the covered producer 
        claims a loss.
    (e) Packer-Owned and Foreign-Owned Hogs Excluded.--The Secretary 
may not make payments under subsection (b) for--
            (1) any hog losses for which the covered producer does not 
        provide sufficient documentation of ownership;
            (2) the losses of packer-owned hogs; or
            (3) the losses of hogs of a producer that is owned, in 
        whole or in part, by any person who is not a United States 
        citizen, lawful permanent resident, or entity.
    (f) Applicability.--This section shall apply for the period 
beginning on April 1, 2020, and ending on the date that national 
processing capacity of hog processing plants is equal to or greater 
than such capacity on February 1, 2020, as determined by the Secretary.
    (g) Definitions.--In this section:
            (1) Covered producer.--The term ``covered producer'' means 
        a person or legal entity that assumes the production and market 
        risks associated with the agricultural production of hogs (as 
        such terms are defined in section 2(a) of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 183(a))).
            (2) Market-ready.--The term ``market-ready'' means, with 
        respect to a hog, a hog that is at least 300 pounds and ready 
        for market, as determined by the Secretary.
            (3) Packer.--The term ``packer'' has the meaning given the 
        term in section 201 of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 191) except such term does not include a packer with 
        invested shares of less than or equal to 10 percent in a 
        facility that slaughters less than or equal to 5 million hogs a 
        year.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
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