H.R. 7051 — Introduced in House

I 116th CONGRESS 2d Session H. R. 7051 IN THE HOUSE OF REPRESENTATIVES May 28, 2020Mr. 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. 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.