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Letter to the Hon. Donald J. Trump, President of the United States - Congressman Costa Leads 126 Members in Calling on President to Ensure Direct Relief to Farmers and Producers in the Coronavirus Food Assistance Program

Letter

By: Bradley Byrne, Paul Gosar, Mike Rogers, Doug LaMalfa, Jerry McNerney, Devin Nunes, Juan Vargas, Neal Dunn, Bill Posey, Ross Spano, Debbie Mucarsel-Powell, Mike Simpson, Roger Marshall, Dan Kildee, Debbie Dingell, Vicky Hartzler, Trent Kelly, Richard Hudson, Jr., Deb Haaland, Anthony Brindisi, Kendra Horn, Dan Meuser, Ron Wright, Jim Costa, Martha Roby, Greg Stanton, Ami Bera, T.J. Cox, Raul Ruiz, Jahana Hayes, Stephanie Murphy, Charlie Crist, Jr., Mario Diaz-Balart, Russ Fulcher, Darin LaHood, John Moolenaar, Paul Mitchell, Blaine Luetkemeyer, Jason Smith, David Rouzer, Tom Malinowski, Elise Stefanik, Anthony Gonzalez, Susan Wild, Louie Gohmert, Vicente Gonzalez, Henry Cuellar, Jaime Herrera Beutler, Liz Cheney, Tom O'Halleran, John Garamendi, Eric Swalwell, Julia Brownley, Scott Tipton, John Rutherford, Val Demings, Alcee Hastings, Sr., Dave Loebsack, Rodney Davis, Ron Estes, Tim Walberg, Tom Emmer, Sam Graves, Steven Palazzo, Donald Bacon, Ben Luján, Jr., Bob Gibbs, Kurt Schrader, Dusty Johnson, Mac Thornberry, Will Hurd, Suzan DelBene, Kim Schrier, Robert Aderholt, Jared Huffman, Josh Harder, Salud Carbajal, Scott Peters, Ted Yoho, Darren Soto, Greg Steube, Abby Finkenauer, Mike Bost, Steven Watkins, Jr., Fred Upton, Jim Hagedorn, Emanuel Cleaver II, Michael Guest, Ted Budd, Xochitl Torres Small, John Katko, Greg Walden, Lloyd Smucker, Michael McCaul, Jodey Arrington, Filemon Vela, Jr., Cathy Rodgers, Mike Thompson, Jimmy Panetta, Pete Aguilar, Joe Courtney, Al Lawson, Jr., Gus Bilirakis, Ted Deutch, Cindy Axne, John Shimkus, Bill Huizenga, Elissa Slotkin, Peter Stauber, Billy Long, Greg Gianforte, Adrian Smith, Lee Zeldin, Troy Balderson, Brian Fitzpatrick, Chuck Fleischmann, Randy Weber, Sr., Roger Williams, Rick Larsen, Mike Gallagher, Bill Flores, John Carter, Dan Newhouse
Date: April 23, 2020
Location: Washington, DC
Issues: National Security Agriculture and Food Health and Health Care

Dear President Trump,

Thank you for your announcement of the Coronavirus Food Assistance Program (CFAP). For many family agricultural operations, this support will mean they are able to stay in business and pass farms and ranches on to the next generation of producers in spite of these challenging times.

However, we are concerned about the $125,000 per commodity and $250,000 per individual or entity payment limits as it relates to assistance for the livestock, dairy and specialty crop sectors. This limitation would severely restrict the program's effectiveness for many family-owned farms and ranches across the nation. We strongly urge you to eliminate payment limits for livestock, dairy and specialty crop producers before the final CFAP program details are announced.

The COVID-19 crisis has caused unprecedented damage to the livestock, dairy and specialty crop industries. Agricultural economists have estimated over $13 billion in harm to the cattle industry and $5 billion to the pork industry due to the pandemic, with many billions more in injury to dairies, fruit, nut, and vegetable producers, and the horticulture and floriculture industry. As is true for many other small businesses across the country, this financial harm comes through no fault of these farmers and ranchers, nor is it the result of typical market forces. As such, these relief payments should aim to indemnify as much loss as possible without restrictive payment limitations.

While some farmers and ranchers produce multiple commodities, and therefore will be eligible for up to the $250,000 total payment limit per individual or entity, many cattle, pork and dairy operations are solely invested in livestock. This common business practice within the cattle, pork and dairy industries of being invested in a single commodity means this payment limit structure will be even more severe for these producers compared to other commodities. Fruit and vegetable producers by comparison can have very high costs of production--strawberry producers can invest $30,000 an acre for example--and thus payment limits of this level are too restrictive to meaningfully address the losses many producers are facing.

It is critical for USDA to provide a level of support that is responsive to the disaster situation producers are currently facing. As you know, Congress approved $14 billion in the CARES Act to partially replenish the Commodity Credit Corporation and we believe that a significant portion of these dollars should be used to ensure that needs are met, even if the payments must be paid in tranches.

We appreciate the support you and Secretary Perdue have provided farmers and ranchers, and we look forward to working with you make certain agricultural producers receive the level of assistance necessary in response to COVID-19.


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