Farm Service Agency Will Begin Taking Applications on Dec. 15
The U.S. Department of Agriculture (USDA) announced a new program to assist hog producers who sold
hogs through a negotiated sale during the period in which these producers faced the greatest
reduction in market prices due to the COVID-19 pandemic. The Spot Market Hog Pandemic Program
(SMHPP) is part of USDA’s Pandemic Assistance for Producers initiative and addresses gaps in
previous assistance for hog producers. USDA’s Farm Service Agency (FSA) will accept applications
Dec. 15, 2021 through Feb. 25, 2022.
SMHPP provides assistance to hog producers who sold hogs through a negotiated sale from April 16,
2020 through Sept. 1, 2020. Negotiated sale, or negotiated formula
sale, means a sale of hogs by a producer to a packer under which the base price for the hogs is
determined by seller-buyer interaction and agreement on a delivery day. USDA is offering SMHPP as
packer production was reduced due to the COVID-19 pandemic due to employee illness and supply chain
issues, resulting in fewer negotiated hogs being procured and subsequent lower market prices.
The Department has set aside up to $50 million in pandemic assistance funds through the Coronavirus
Aid, Relief and Economic Security (CARES) Act for SMHPP.
SMHPP Program Details
Eligible hogs include hogs sold through a negotiated sale by producers between April 16, 2020, and
Sept. 1, 2020. To be eligible, the producer must be a person or legal entity who has ownership in
the hogs and whose production facilities are located in the United States, including U.S.
territories. Contract producers, federal, state and local governments, including public schools and
packers are not eligible for SMHPP.
SMHPP payments will be calculated by multiplying the number of head of eligible hogs, not to exceed
10,000 head, by the payment rate of $54 per head. FSA will issue payments to eligible hog producers
as applications are received and approved.
Applying for Assistance
Eligible hog producers can apply for SMHPP starting Dec. 15, 2021, by completing the FSA-940, Spot
Market Hog Pandemic Program application. Visit farmers.gov/smhpp for a copy of the Notice of Funds Availability,
information on applicant eligibility and more information on how to apply.
Applications can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax,
hand delivery or via electronic means. To find your local FSA office,
visit farmers.gov/service-locator. Hog producers can also call 877-508-8364 to speak
directly with a USDA employee ready to offer assistance.