HOGS

Perdue Suggests CFAP2 May Be Coming

Wed, 03 Nov 2021 20:32:49 GMT

Ag Secretary Sonny Perdue suggests a second Coronavirus Food Assistance Program (CFAP) for farmers and ranchers could be coming as soon as the end of August or early September.

Appearing on AgriTalk Friday (Aug. 14) with host Chip Flory, Perdue suggested more financial assistance for cattlemen may be in the works with discussions by legislators. Livestock producers have received half of the CFAP money to date, $3.54 billion, with cattle getting the bulk of that, $3.06 billion. Hog producers have received $442 million. Perdue said the money that has not been distributed is likely due to the fact the applications have not yet been filed. The deadline for filing those applications was recently extended until September 11.

Perdue also noted the livestock cutoff date of April 15 for financial damages was likely not sufficient to cover losses by cattlemen during that time frame.

“There was there was no doubt a cliff there (April 15),” Perdue said. “But that first CFAP program covered the first quarter of the year really kind of ending on April 15. And that’s what we could determine the damages at that point.”

Perdue said CFAP2 would help “even out” support for losses incurred after April 15 “when we release those rules probably the end of this month, the first of September, and sign up will begin early in September.”

CFAP2, he says, will “rectify” the shortfall in assistance to cattlemen found in the first CFAP.

“So the cattle guys need to pay attention to the changes, the updates that are coming, because there’s potential for another payment. Really all livestock, both pork and cattle. But the cattle particularly because there was a pretty good clip on the payment.” He also noted that the 20% of the CFAP money held back would be available, too.

Asked about expanding the payment limits to individual producers, Perdue said he wasn’t ready to answer the question but that there had been much discussion in “this legislation they’re considering about expanding limits.

Five Facts About the Ag Labor Shortage

Wed, 28 Jul 2021 17:36:50 GMT

Farm labor continues to be an issue, as trends like a generational shift translated into different job expectations and more global competition. Consider these five issues affecting your ability to find qualified workers:

1. Labor shortages are hitting ag hard
Concerns about labor shortages in the U.S. continue to grow in 2021. The June Ag Barometer from Purdue University found nearly two-thirds (66%) of respondents said they either had “some” or “a lot of difficulty” hiring adequate labor, compared to 30% in 2020. Farm Journal reported on the shortage , showing restaurants and food retail , lumber and rural non-farm employment are also affected.

2. But farm labor was a struggle before COVID-19
Two years ago, Farm Journal’s 2019 Ag Labor Study found both employers and employees were struggling. From the employer perspective, trends like a generational shift translated into different job expectations and more global competition, and the skills required were evolving due to automation and technology updates. From the employee perspective, no paid time off or health insurance was the norm. Even so, the study also found that dairy producers in particular were paying more than they ever had before.

3. Farm workers have many options
According to Farm Journal’s 2021 Ag Labor Survey, 59% of row crop and ag retailer respondents say looking for a job is either easier or the same as before. For respondents who said finding a job was easier, the top reasons were more jobs and less competition. For those who said their ability to find a job was about the same, they reported no real changes to the job market compared to previous years. For those who have struggled, the biggest reason was employers who had higher requirements.

4. Meanwhile, farmers and ag retailers are feeling the same pinch
The 2021 Farm Journal Labor Survey found most farm employers (87%) and ag retailers (91%) are finding it harder to fill positions. Many believed unemployment benefits were enough to keep applicants away. Others felt that it’s now harder to compete with other industries offering better pay, hours and benefits, especially if those jobs aren’t in rural areas. Some farmers are now considering hiring H-2A workers for the first time, while retailers continue to struggle to find qualified candidates.

5. It’s not just fewer available workers. New would-be employers are looking to compete
According to the 2021 Farm Journal Labor Survey, 44% of farmers who don’t currently employ workers are looking to hire in the next three years. They are entering the hiring market at a time when farmer videos go viral on TikTok as they point out crops on the verge of going to waste and face hardships to get H-2A workers across the border. Wages are on the rise, and Purdue University’s Jayson Lusk says lower-level employees are quitting to make just as much not working. Meanwhile, commodity prices are volatile but remain high. The one silver lining is that some economists expect inflation to ease off historic highs later this year.

Eli Lilly Attracts Interest for Animal Health Division

Fri, 20 Nov 2020 05:11:38 GMT

(Bloomberg) -- Eli Lilly & Co. has attracted interest from private equity firms including Bain Capital and Advent International Corp. for its animal-health business, as the pharmaceutical giant considers options for the ailing unit, people with knowledge of the matter said.

Carlyle Group LP may also consider bidding for Elanco, as the unit is known, said the people, who asked not to be identified as the matter isn’t public. Considerations are at an early stage and Lilly may choose to keep the business or pursue a spinoff, they said. Elanco could be valued at $14 billion to $16 billion, according to JPMorgan Chase & Co. estimates from December, when Lilly said it was weighing an initial public offering, sale or merger of the unit.

“We do not comment on market rumors or deal speculation,” said Mark Taylor, a spokesman for Indianapolis-based Lilly. “We are still reviewing strategic alternatives for our Elanco Animal Health business and expect to provide an update mid-year in connection with our Q2 financial results announcement.”

Representatives for Bain, Advent and Carlyle declined to comment.

Several health-care companies are examining options for their animal-health business as they seek to replicate the success of Zoetis Inc., whose shares have almost tripled in value since it separated from Pfizer Inc. in 2013. Henry Schein Inc., a Melville, New York-based medical supplier for doctors and dentists, said Monday that it will spin off its animal unit after combining it with closely held Vets First Choice.

On Tuesday, Lilly said that first-quarter sales at Elanco fell 1 percent year-over-year to $761 million, hit mainly by a decrease in sales to the livestock industry. The company’s products, including drugs that help cattle gain weight and dairy cows produce more milk, have been increasingly at odds with a U.S. consumer focus on organic and unaltered food.

The “clean food movement hit us,” Elanco President Jeff Simmons said in January.

Lilly has grown Elanco rapidly in recent years, striking at least 10 deals since 2007, including the $5.4 billion acquisition of Novartis AG’s animal-health unit in 2014.

In an interview with Bloomberg TV Tuesday, Lilly Chief Executive Officer Dave Ricks said the company is more focused on building its own pipeline through bolt-on acquisitions and partnerships than pursuing large-scale dealmaking.

“I wouldn’t be surprised to hear about more types of those combinations, that’s just not where we’re focused today,” Ricks said, discussing Takeda Pharmaceutical Co.’s potential $64 billion deal to buy Shire Plc.

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