“This first draft [of the program] is probably going to be in the $16 to $18 billion dollars, $16 billion in direct payments to our producers really in all of our sectors, including cattle, livestock, the cash cow count, calf operations, hogs, as well as produce, specialty crops, and commodities. And then the dairy sector, certainly all of those and other extraneous things like horticulture, any kind of ag producer will be available for direct payments,” he explained. “Then we’re also going to have about a $2 to $3 billion dollar purchasing program trying to take this dislocated food out of our supply chain that had been going into food service institutions and move it back into our food banks and other non-profits to rake in again to help provide the needed food for people who are staying at home.” [Secretary of Agriculture, Sonny Perdue, 16 April 2020]
Andrew M. Novaković, PhD response to this information:
“The MFP was apportioned to various agricultural sectors in accordance with WTO procedures for measuring the impact of trade restrictions. [More] money went to soybeans and dairy got very little. We export a fair amount of dairy products but it is nothing compared to soybeans. Also, the food donation money went more towards fruits and vegetable, although dairy [did get some].
… I think the strategy for divvying up the money will be very different. It may be more in accordance with the shares of farm cash receipts that the various sectors generate. If this it the rule, dairy will get a lot more than it did under MFP.
It may be more driven by the estimated loss of commercial sales due to the restrictions that closed schools and restaurants. If so, dairy would probably do even better than by sales according to cash receipts.”
We will continue to update this on the Federal Aid packages as they are proposed.