USDA buys meat to help drought-stricken farmers

2012-08-13T15:30:00Z 2012-08-13T18:42:19Z USDA buys meat to help drought-stricken farmersThe Associated Press The Associated Press
August 13, 2012 3:30 pm  • 

WASHINGTON -- The government will buy up to $170 million of pork, lamb, chicken and catfish to help drought-stricken farmers, the White House said Monday, as President Barack Obama brought his re-election campaign to rural voters in Iowa.

The purchase for food banks and other federal food nutrition programs is expected to help livestock producers struggling with the high cost of feed during the worst drought in a quarter-century.

Federal law allows the Agriculture Department to buy meat and poultry products to help farmers and ranchers affected by natural disasters.

The announcement came as Obama criticized Republican vice presidential candidate Paul Ryan for blocking a farm bill that could help farmers cope with the drought. Obama touted his efforts to help farmers as he began a tour of the battleground state he won in 2008.

"The purchases will help mitigate further downward prices, stabilize market conditions and provide high-quality, nutritious food to recipients of USDA nutrition programs," Agriculture Secretary Tom Vilsack said in a statement.

The USDA said it would buy up to $100 million of pork products, $50 million of chicken, $10 million of lamb and $10 million of catfish.

At the direction of the president, the Defense Department also said it is reviewing its procurement of beef, pork and lamb to determine if additional or accelerated purchases can be made to provide some relief to the agriculture industry and get the benefit of lower prices.

DoD purchases approximately 94 million pounds of beef, 64 million pounds of pork and 500,000 pounds of lamb annually.

Many ranchers have sold off livestock as feed costs rise and their pastures dry up. That selloff is expected to lead to lower prices through December with a glut of meat on the market but higher costs beginning next year.

Obama has pledged a wide-ranging response to the drought, including giving farmers and ranchers access to low-interest emergency loans, opening more federal land for grazing and distributing $30 million to get water to livestock.

Severe drought across the nation's midsection has sent corn prices soaring by nearly 23 percent. More than half of all U.S. counties have been designated primary disaster areas this growing season, mostly due to drought.

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