Spot Market Hog Pandemic Program

Do you raise hogs that were sold through a negotiated, or negotiated formula, sale? You may be eligible for assistance for hogs sold through a negotiated sale from April 16, 2020, through September 1, 2020, through USDA’s Spot Market Hog Pandemic Program (SMHPP). This new program is part of USDA’s Pandemic Assistance for Producers initiative. 

USDA’s Farm Service Agency will accept SMHPP applications from December 15, 2021, through February 25, 2022.  

How the Spot Market Hog Pandemic Program Works

Packer production was reduced due to the coronavirus pandemic, resulting in fewer negotiated hogs being procured and lower market prices. USDA has allocated up to $50 million in pandemic assistance funds for SMHPP and other related pandemic assistance. 

SMHPP provides assistance to producers who sold hogs through a negotiated sale from April 16, 2020, through September 1, 2020, the period in which these producers faced the greatest reduction in market prices due to the COVID-19 pandemic. Negotiated sale, or negotiated formula sale, means a sale by a producer of hogs – excluding breeding stock – to a packer under which the base price for the hogs is determined by seller-buyer interaction and agreement on a delivery day. Hogs must have been physically located in the United States to be eligible for SMHPP.  

USDA will calculate SMHPP payments by multiplying the number of head of eligible hogs, not to exceed 10,000 head, by the payment rate of $54 per head. You may use the following equation for this calculation:

Expected SMHPP Payment = # Eligible Hogs Sold from April 16, 2020 through September 1, 2020 x $54

There is no per person or legal entity payment limitation on SMHPP payments. FSA will issue payments not to exceed 10,000 head per producer to eligible hog producers as applications are received and approved. 

Program Eligibility

Eligibility requirements for SMHPP applicants are outlined below. We recommend you review these requirements before initiating your SMHPP application.

To be eligible for SMHPP, an applicant 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. Please note that contract producers; federal, state, and local governments, including public schools; packers; and producers for hog purchases through all other purchase types are not eligible for SMHPP. Ineligible purchasing types may include other market formula, swine or pork market formula, other purchase arrangements, and packer owned.
  • Have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017, and 2018. If a person or legal entity’s average AGI for 2016, 2017, and 2018 exceeds $900,000 but their 2020 AGI is $900,000 or less, they must submit form FSA-1123 and provide a certification from a licensed CPA or attorney affirming the person’s or legal entity’s 2020 AGI is not more than $900,000. AGI provisions are applicable to members of a legal entity, including a general partnership or joint venture who are at or above the fourth tier of ownership in the business structure. If a producer fails to provide FSA-1123, the eligible livestock owner’s payment will be reduced by the portion of a payment attributed to a member who exceeds the $900,000 AGI limitation or is otherwise ineligible for payment.

  • Comply with provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions. These will be addressed via form AD-1026 during the application process.
  • Not have a controlled substance violation.
  • Be a citizen of the United States or a resident alien.
  • Submit a complete SMHPP application form (FSA-940) and provide all required documentation. The below section details documents required to apply for SMHPP.

The SMHPP Notice of Funds Availability details all eligibility requirements.  

Apply for the Spot Market Hog Pandemic Program

The SMHPP application period is December 15, 2021, through February 25, 2022.

Eligible producers can apply for SMHPP by working directly with the Farm Service Agency (FSA) office at their local USDA Service Center. Applications will be accepted via mail, fax, hand delivery, or electronic means.

Alternatively, producers with an eAuthentication account may apply for SMHPP via our SMHPP Application Portal. Applications will be completed, electronically signed, and submitted directly to your local USDA Service Center through this online system. Please reference our SMHPP Application Portal User Guide for additional information, including step-by-step application instructions. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in to learn more.

FSA staff will work with you to complete portions of the CCC-902 – Farm Operating Plan – if necessary. Additionally, the following forms will be needed to apply for SMHPP. Certain forms may already be on file with the FSA office at your local USDA Service Center

You are encouraged to contact the FSA office at your local USDA Service Center with any questions about SMHPP, program eligibility, or the application process. You may also call 877-508-8364 to speak directly with a USDA employee ready to provide one-on-one assistance. 

Find Your Local Service Center

We are committed to delivering USDA services to America’s farmers and ranchers while taking safety measures in response to the pandemic. Some USDA offices are beginning to reopen to limited visitors by appointment only. Service Center staff also continue to work with agricultural producers via phone, email, and other digital tools. Learn more at farmers.gov/coronavirus.

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Visit the Risk Management Agency website to find a regional or compliance office or to find an insurance agent near you.