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Miller-Meeks Joins Iowa Delegation Letter to Sec. Vilsack

February 24, 2021

Delegation seeks to include custom cattle feeders in renewed payments from USDA’s CFAP program

 

WASHINGTON, D.C. – Today, February 24th, 2021, Rep. Mariannette Miller-Meeks (IA-02) joined the rest of Iowa’s Congressional delegation urging U.S. Department of Agriculture (USDA) Secretary Tom Vilsack to expand eligibility of the department’s COVID-19 relief programs to include custom cattle feeders, a sector of Iowa’s agricultural economy operated primarily by family farmers.

In a letter, Senators Chuck Grassley and Joni Ernst, and Representatives Mariannette Miller-Meeks, Ashley Hinson, Cindy Axne, and Randy Feenstra, highlighted the exclusion of custom cattle feeders from the Coronavirus Food Assistance Program (CFAP).

“While we appreciate USDA’s commitment to assisting much of the beef cattle industry, it’s been brought to our attention that USDA did not include assistance for custom cattle feeders. Custom feeding is an important part of Iowa's cattle industry,”the members wrote. “In Iowa, nearly all custom feedyards are owned and operated by farm families. Many of these custom cattle feeders have been unable to conduct business as usual due to the COVID-19 pandemic, with yards sitting empty or at low capacity….To assist custom cattle feeders during this difficult time, we request that USDA include custom cattle feeders as part of any upcoming assistance plans.”

The members also emphasized the ability for custom cattle feeders, which have faced similar business difficulties due to the COVID-19 pandemic, to meet the same loss requirements that swine and poultry growers had to meet in previous rounds of CFAP.

Custom cattle feeders are losing revenue and Iowans are suffering,” the members wrote.Simply put, the plight of custom cattle feeders in Iowa is very similar to those in the swine and poultry sectors.”

On January 27, USDA froze additional CFAP payments to conduct a customary review of the program, including its payments and eligibility.

Last year, the tworounds of CFAP assistance provided over $2.1 billion in assistance to Iowa’s farmers, growers, and producers. USDA approved over 113,000 applications from Iowa for CFAP aid.

"The Iowa Cattlemen's Association is pleased to have a united show of support from our delegation on this important issue," said Matt Deppe, CEO of the Iowa Cattlemen's Association."One of our top priorities, beginning in 2020 and extending on into the new year, has been working to ensure cattle producers receive adequate assistance to recover from the market disruption caused by the COVID-19 pandemic. While the USDA and Congress have made efforts to support all sectors of agriculture, it's important to recognize that custom cattle feeders have been left out in the cold. We appreciate the unwavering dedication of Iowa's congressional leaders on this front and look forward to working with the newly-confirmed Sec. Vilsack to develop solutions that address the challenges our producers face."

The full text of the letter can be found below:

Dear Secretary Vilsack,

Congratulations on your recent confirmation as Secretary of Agriculture. We look forward to working with you on issues that are important to Iowa. We write to bring your attention to the exclusion of custom cattle feeders in the Coronavirus Food Assistance Program (CFAP). 

On January 15, 2021, former Secretary Perdue announced the United States Department of Agriculture (USDA) would provide additional assistance through CFAP, specifically by expanding eligibility for certain producers and updating payments to compensate producers that had previously applied to the program.

While we appreciate USDA’s commitment to assisting much of the beef cattle industry, it’s been brought to our attention that USDA did not include assistance for custom cattle feeders. Custom feeding is an important part of Iowa's cattle industry. Custom cattle feeders provide services including: yardage, feed, health services, marketing, and more for livestock that are owned by someone else. In Iowa, nearly all custom feedyards are owned and operated by farm families. Many of these custom cattle feeders have been unable to conduct business as usual due to the COVID-19 pandemic, with yards sitting empty or at low capacity. As a result, custom cattle feeders are losing revenue and Iowans are suffering. Simply put, the plight of custom cattle feeders in Iowa is very similar to those in the swine and poultry sectors.

USDA has set precedent regarding eligibility for payment. In order for swine or poultry contract growers to be eligible for payment, they must demonstrate a decrease in revenue between 2019 and 2020. Furthermore, they must prove they are not entitled to a share from sales proceeds of the commodity. Custom cattle feeders could easily meet both eligibility requirements.

To assist custom cattle feeders during this difficult time, we request that USDA include custom cattle feeders as part of any upcoming assistance plans. In light of the recent announcement on January 27, 2021, by USDA to freeze CFAP payments, we find this issue timely and relevant.

Thank you for your dedicated service and support of the beef cattle industry. We appreciate your attention on this matter.

Respectfully,

Sen. Chuck Grassley

Sen. Joni Ernst

Rep. Cindy Axne

Rep. Randy Feenstra

Rep. Ashley Hinson

Rep. Mariannette Miller-Meeks

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