Legislative News Flash – Federal Appropriations and COVID-19

Clint Bain and Neil Burnette
December 21, 2020

The House of Representatives and US Senate announced agreement to provide additional COVID-19 assistance and the fiscal year 2021 appropriations measures.  We expect one additional continuing resolution providing the time needed to send these bills to the President’s desk.  We do not expect a government shutdown.

The COVID-19 assistance details are posted below for your review.  We will send a second update outlining the annual funding levels provided through the appropriations bill.

Covid-19 Agriculture Assistance – $13 billion total

  • $11.1875 billion for agriculture producers, growers, and processors
  • Coronavirus Food Assistance Program (CFAP) payments for the 2020 crop year – option for 2018 and 2019 sales – (cattle included)
  • Up to $1 billion for livestock and poultry contract growers
  • $20 million to improve and maintain animal disease prevention and response capacity
  • May extend the term of a marketing assistance loan
  • No less than $1.5 billion to purchase food and agricultural products, including seafood
  • Up to $200 million to support timber harvesting and hauling businesses
  • May make payments to producers of advanced biofuel, biomass-based diesel, cellulosic biofuel, conventional biofuel, or renewable fuels with market losses due to COVID-19
  • May make recourse loans available to dairy product processors, packagers, or merchandisers
  • $100 million to support the Farm Bill’s Specialty Crop Block Grant Program
  • $100 million for the Farm Bill’s Local Agriculture Market Program
  • $75 million for the Farm Bill’s Farming Opportunities Training and Outreach Program
  • $400 million to pay for milk to be processed into dairy products and donated to non-profit entities (food banks, feeding programs, etc.)
  • Establishes a Federal livestock dealer trust to ensure that livestock producers are paid for their animals
  • $60 million to make facility upgrade and planning grants to existing meat and poultry processors to help them move to Federal inspection
  • $28 million to be distributed as block grants to state departments of agriculture for use to support existing farm stress programs

*Additional funds were provided to domestic nutrition programs.