WASHINGTON, D.C. – Hemp farmers—who’ve been onerous hit by the COVID-19 disaster and hampered by sluggish reforms to federal drug rules—at the moment are eligible for federal assist below a second spherical of pandemic financial reduction.
The unique installment of the U.S. Department of Agriculture (USDA) Farm Service Agency’s Coronavirus Food Assistance Program (CFAP1), which contained $16 billion in funds, was distributed within the spring. Hemp farmers weren’t eligible to use.
President Donald Trump and U.S. Secretary of Agriculture Sonny Perdue introduced the second spherical of CFAP reduction on September 18. An further $14 billion in funds has been earmarked for farmers, bringing the quantity of pandemic reduction funding for the U.S. agricultural sector to $30 billion to this point.
A USDA press release saying the help package deal categorised hemp as a “flat-rate crop,” and mentioned, “Crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others.”
The U.S. Hemp Growers Association (USHGA) mentioned after a whole lot of business members contacted the USDA, in addition to a telephone name between the commerce group and USDA officers, hemp farmers had been added to the proposal on the final minute.
“But that is not necessarily good news,” USHGA mentioned, after CFAP2 was introduced. “Unlike most commodities and numerous crops equivalent to aloe leaves, hemp growers weren’t made eligible for their losses within the 2019 crop season. These losses had been verified by three completely different personal information corporations, since there isn’t any giant clear buying and selling market for hemp, and USDA doesn’t but acquire a lot pricing information on hemp. Rather USDA mentioned that hemp growers can apply for CFAP based mostly on the 2020 crop acreage—a crop just below harvest proper now. It seems they might obtain a flat cost of $15 per acre.
“This is not a remedy for hemp growers who clearly lost markets due to Coronavirus in early 2020 when many manufacturing facilities and retail outlets across the United States were shutdown, thus drying up a market for hemp grown in 2019, to be processed,” the group added.
“U.S. Hemp Growers Association is disappointed in this result. As a farmer-led organization we are concerned about the long-term implications of lackluster support of America’s newest crop, particularly as we focus on building additional opportunities in our rural communities with hemp-based products such as textiles, plastics, building materials, food, and extracts from hemp, products that are valued by millions of Americans,” USHGA mentioned.
“We just couldn’t totally estimate what those [losses during spring and summer] would be, so we waited until later this summer to understand better what the damage is from COVID,” USDA Secretary Perdue mentioned in an interview on September 18.
Perdue additionally expressed disappointment that extra specialty crop farmers had not signed up for CFAP reduction, however famous that some, particularly hemp farmers, may not have a lot expertise in submitting functions to the USDA.
Some critics of the package deal have mentioned further pandemic reduction funding, added to billions already spent to help farmers who fell sufferer to commerce insurance policies throughout his administration, is merely an try by President Trump to “buy votes” in closely agricultural states.
Hemp crop producers can apply for help below CFAP2 by December 11, 2020. A CFAP Call Line quantity is obtainable for candidates who require one-on-one help, 877-508-8364.