STEP #1 – Locate your local FSA service center
USDA service centers are open for business by phone appointment only. FSA is also working with producers by phone, email, mail and fax.

The following is a status update on TCFA events in light of concerns surrounding COVID-19. Please know that the health and safety of participants is our number one priority. 

This list is subject to change as we learn more.

Canceled
TCFA Fed Beef Challenge - Originally scheduled for April 8
TCFA Feedyard Tech, Spring Semester - Originally scheduled for April 14-16 and 21-23
TCFA Spring Safety Seminar 
TCFA Feedyard Camp - Originally scheduled for June 23-26

On Schedule
TCFA Junior Fed Beef Challenge - Contest day July 24
TCFA Convention - October 4-10, Grapevine, Texas

Ongoing efforts to keep you informed on news surrounding the beef industry and COVID-19.
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May 13, 2020

• PPP clarification on economic need certification: for borrowers with loans less than $2 million - Today the SBA issued an updated FAQ document that extends an automatic safe harbor to borrowers receiving PPP loans with an original principal amount of less than $2 million. Question 46 specifically addresses this issue. According to SBA, these borrowers “will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
• For borrowers with loans in excess of $2 million - While we realize most agricultural borrowers acted in good faith, it is important to be aware that tomorrow, May 14, is the deadline for PPP borrowers to return funds if they received loans in excess of $2 million and did have access to other sources of capital. It is also important to note that these borrowers will be subject to a compliance review by the SBA. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness.

 

• Producers can take step now for CFAP applications. We are still waiting for USDA to release application details for the Coronavirus Food Assistance Program (CFAP). In the meantime, FSA distributed an e-bulletin today with steps producers can take now to prepare for the application period.
• To apply for the program, you will need to call the Farm Service Agency (FSA) county office to schedule an appointment. USDA service centers are open for business by phone appointment only. Your local FSA staff will work with you to apply for the program, and through forms asking for this type of information:
  • Contact information
  • Personal, including your Tax Identification Number
  • Farming operating structure
  • Adjusted Gross Income to ensure eligibility
  • Direct deposit to enable payment
• If you are an existing customer, this information is likely on file at your local USDA Service Center. Additional information and details on CFAP will be posted here: farmers.gov/CFAP
• As a reminder, USDA, AMS and FSA will host a webinar Thursday, May 14, at 12:00 p.m. CDT for producers interested in applying for direct payments through the Coronavirus Food Assistance Program (CFAP). The webinar will provide information about the application process and required documentation prior to official signup date which has not yet been announced. Producers who are new to participating in FSA programs are encouraged to join the webinar. Please register in advance here.
  
  
• A bipartisan bill introduced Tuesday by Sens. Chuck Grassley (R-Iowa), Steve Daines, (R-Mont.), Joni Ernst (R-Iowa), Cindy Hyde-Smith (R-Miss.), Mike Rounds (R-S.D.), Tina Smith (D-Minn.) and Jon Tester (D-Mont.) would require beef packing plants who slaughter more than 125,000 head of cattle a year to purchase at least 50% of their weekly volume on the cash market. Sen. Chuck Grassley (R-Iowa), lead author of the bill, has penned various iterations of this bill over the last twenty years.
  • As noted in a letter to Congress on the issue, TCFA cannot support a government mandate. A one-size-fits-all mandate completely overlooks the various supply/demand situations in the distinct cattle feeding regions across the nation. A study completed by Dr. Stephen Koontz, Colorado State University, provides recommendations for minimum levels of negotiated trade for each of the major cattle feeding regions. For Texas and Oklahoma, the recommended level of negotiated trade is 6-13% (on average) for significant price discovery. In lieu of government intervention, TCFA members are actively working to increase price discovery through more negotiated trade and achieve those recommended levels with free-market alternatives that are effective, flexible and cause less undo economic harm to both cow-calf producers and feeders.

Amarillo, Texas - The Texas Cattle Feeders Association (TCFA) today called on U.S. Agriculture Sec. Sonny Perdue to remove payment limitations on producers that have suffered extraordinary losses as a result of the COVID-19 pandemic.

“We are grateful for Sec. Perdue’s support of U.S. agriculture and the cattle industry during these unprecedented times, and appreciate USDA’s payment assistance,” Paul Defoor, TCFA chairman, said.

“We understand that USDA is in the difficult position of allocating assistance levels for each segment of agriculture; however, the $125,000 payment limit per commodity fails to recognize the size and scope of the many cattle operations in Texas and across the nation. The proposed limit will preclude most cattle feeders in Texas, Oklahoma and New Mexico from receiving any meaningful assistance relative to their actual losses.”

Earlier this month, a study led by Dr. Derrell Peel with Oklahoma State University projected market losses of $13.6 billion for cattle producers — $247.15 per head for cow-calf producers, $159.98 per head for stocker operators, and $205.96 per head for cattle feeders.  

TCFA members annually market more than 6,000,000 fed cattle or 28% of the nation’s fed beef. Under proposed payment limitations, the average TCFA feedyard (35,000 head capacity) will recoup less than 1% of actual losses. In addition to feedyard losses, the average producer who owns and markets 2,500 head of cattle in a custom feedyard will recover less than 25% of their loss. A mere 600 head will hit the $125,000 payment limit.    

“Our industry is facing unprecedented times in the wake of market disruptions. While the relief is welcomed, the caps simply aren’t substantial enough to stabilize the cattle feeding industry — an essential component of our nation’s food supply,” he said.  

Current USDA disaster assistance programs, including the Emergency Assistance for Livestock andthe Livestock Indemnity Program, do not impose payment limitations due to the extraordinary and unforeseen nature of producer losses.  

“USDA has precedence for not establishing payment limitations on producers who have suffered extraordinary losses as a result of disasters. Disaster assistance in response to COVID-19 should be no exception,” Defoor said.

Background on USDA Assistance

On April 19, 2020, USDA announced the $19 billion Coronavirus Food Assistance Program (CFAP). The program uses funds provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities.  

The program provides $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted by COVID-19.  

This includes $9.6 billion for the livestock industry, specifically $5.1 billion for cattle. 

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Texas Cattle Feeders Association (TCFA) represents the cattle feeding industry in the three-state region of Texas, Oklahoma and New Mexico. This area, known as Cattle Feeding Country, is the largest cattle  feeding region in the U.S. A multi-billion-dollar industry, it annually markets more than 6 million fed cattle – approximately 28 percent of the fed cattle produced in the United States.

By Carmen Fenton, director of communications, TCFA

When I wrote this a few months ago, I had no idea what our nation, our world and our industry would be facing amid the coronavirus outbreak. Like many of you in agriculture, I’m not on the ranch, at the feedyard, the packing plant or the grocery store. I’m not on the front lines, and honestly, working from a computer screen feels so insignificant during a time like this.

So, what can I do to help the cause?

Well, to start, I can stay home. There are thousands in our industry who cannot stay home. America depends on them to do what is necessary for all of us. When you stay home, you are protecting them. Not everyone can stay home, but I can.

​I can also remind everyone that beef is healthy and plentiful. The U.S. production chain is unmatched in terms of efficiency, and producers are working around the clock to get beef to you. I know there are empty meat cases in parts of the country, but rest assured that more is on the way.

Also, our beef supply is safe. Public health and food safety experts do not have any evidence of food or food packaging being associated with transmission of COVID-19. However, we do know, that like other viruses, it is possible that the virus that causes COVID-19 can survive on surfaces or objects. This is why it is critical to practice good hygiene and properly cook meat. When cooking, be sure to use a food thermometer to ensure a safe internal temperature. Additionally, always follow the 4 key steps of food safety – clean, separate, cook and chill.

Additionally, I can reassure you that feeding your family beef is a good decision. Beef provides nutrients we all need, particularly, protein, zinc and iron. These are key ingredients for a strong immune system, active lifestyle, brain development and  are often lacking in diets of kids and teens. For older adults, getting the right amount of protein becomes even more important. Protein rich foods like beef help fight off diseases like sarcopenia (loss of muscle mass), type-2 diabetes and osteoporosis.

​Here are a few more quick facts to remember about beef.

• A 3 oz. serving of beef provides essential nutrients including protein, iron, zinc and vitamins B6 and B12.
• That same 3 oz serving gives your body 50 percent of the recommend Daily Value of protein, and it does so in only 170 calories. Win-win.
• Half of the fatty acids found in beef are monounsaturated fatty acids, the same kind found in olive oil. These fats can help lower cholesterol.
• High-quality protein, like that in beef, plays an increasingly important role in muscle maintenance, weight management, and the prevention of chronic diseases.
• People who eat a higher-protein diet feel more satisfied, which can help maintain a healthy weight.

As we all try to figure out this temporary, new normal, please know that TCFA will continue to provide you with accurate, timely information so you can make the best decisions for your family.