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Klobuchar Successful in Pushing USDA to Address Pork Producers' Crisis

At Klobuchar's request, USDA agrees to buy up $50 million in surplus pork for nutrition programs

May 1, 2008

Washington, D.C. – U.S. Senator Amy Klobuchar announced that the United States Department of Agriculture (USDA) will purchase $50 million in surplus pork to help pork producers who have been devastated by a combination of low hog prices and high input costs.  USDA will donate the food to school lunch programs and other federal nutrition services.  Klobuchar sent a letter two weeks ago urging the USDA Secretary, Ed Schafer, to help stabilize prices and help Minnesota pork producers who have been hit hard with the crisis.  Klobuchar spoke by phone yesterday with Secretary Schafer emphasizing the importance and urgency of the situation.

“Plunging hog prices have created a crisis in an industry that is vital to our state’s economy,” Klobuchar said. “Some of our working families are being hit by a combination of economic forces completely beyond their control.  I appreciate Secretary Schafer’s responsiveness and will continue to push to help Minnesota’s pork producers in this difficult time.”

The Minnesota Pork Producers’ Association (MPPA) Executive Director David Preissler commented on the decision, “I’d like to thank Senator Klobuchar for her swift attention to this issue and for making personal contact with the Secretary.  MPPA is very appreciative of her efforts.  This is a win for people who need nutrition assistance and it also helps pork producers in Minnesota.”

In April, wholesale pork prices hit their lowest level in four years. At the same time, pork producers are paying record prices for inputs such as feed and fuel.  Earlier in April, 250 pork producers convened an emergency meeting in Mankato, Minnesota, to address this crisis, and many expressed concerns to Klobuchar’s office that their operations would not survive the year under current conditions.

Minnesota is the nation’s No. 3 pork producer, with 2,500 farms and more than 20,000 jobs in hog production and pork processing. By one estimate, the U.S. pork industry could lose as much as $3.5 billion this year.

Section 32 of the 1935 federal Farm Bill gives the Secretary of Agriculture authority to buy commodities in time of market surpluses to stabilize farm income and supply federal nutrition programs.  Klobuchar’s letter to Schafer to use federal authority that allows the Department of Agriculture to buy surplus commodities, taking them off the market and donating them to school lunch programs and other federal nutrition services.

“This is exactly the kind of market crisis that Congress had in mind, and it is time for USDA to use that authority,” Klobuchar said.

The full text of the Klobuchar’s letter from last month is below:


April 18, 2008

The Honorable Ed Schafer
Secretary
U.S. Department of Agriculture
1400 Independence Avenue S.W.
Washington, D.C. 20250

Dear Secretary Schafer:

I write to urge you to take prompt action to support American pork producers who are facing severe economic hardship due to falling hog prices and rising input costs.

Pork producers across the country are currently facing the lowest cash prices for hogs in four years, at a time when the costs of feed and energy are soaring to record highs.  Earlier this week, 250 pork producers convened an emergency meeting in Mankato, Minnesota to address this crisis, and many expressed concerns that their operations would not survive the year under current conditions.  Nationwide, these conditions may result in losses to hog farmers of more than $3 billion this year. 

Minnesota ranks third in the nation in pork production, with more than 10 million animals raised on 2,500 farms each year.  Hog farming also provides more than 20,000 jobs and $7 billion in economic activity to the state each year.

I am deeply concerned for the future of pork production in Minnesota and the country if quick action is not taken.  I therefore urge you to use Section 32 funds to purchase surplus pork for use in USDA nutrition programs. 

As you know, under Section 32 of the Act of August 24, 1935, the Secretary of Agriculture has the authority to support farm prices by purchasing surplus commodities for use in school lunches and other domestic food programs.  This will not only assist our pork producers in weathering the current crisis, but it will also provide a much-needed boost to schools, child care centers, food banks and other domestic food providers who have come under extreme pressure from rising unemployment and reduced commodity donations from USDA.

I thank you for your consideration of this request, and for your continued work in support of American farmers.

                    Sincerely,

                    s/

                    Amy Klobuchar
                    United States Senator

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