The HEROES Act recently passing in the House has many wondering what is in it, we asked Dustin Holden, Controller here at Powder River, to do a short analysis on the HEROES Act and the provisions that affect cattle producers.
With the recent closures of meat processing plants throughout the Midwest, there are very real concerns about the impact to cow-calf producers. Cow-calf producers are the first layer of beef supply, and the concerns over their ability to sell their calf crop is a real threat to the American beef supply.
The recently introduced bill, The HEROES Act, introduced by numerous House Democrats, offers aid to agricultural producers. Among other things, this bill aims to help keep critical components of our economy going, even if the demand, and supply chain are disrupted.
The relevant provisions in this Act provide two main benefits for cow-calf producers. The first proposal is protecting livestock sellers by requiring dealers to maintain a trust account to ensure that sellers are compensated for their livestock. Most producers require cash from their calf crop to keep the ranch going . This once-a-year paycheck provide the revenue for all the hard work the ranchers put into their cattle.
Second, for those producers affect by reduced sales price of market-ready livestock, the Secretary of Agriculture shall make payments to offset the losses incurred. The value of reimbursement shall be the average fair market value between March 1st and the passage of the HEROES Act times 85 percent. Although this is not the market-rate at the time, this can be a significant business-saving reimbursement to keep producers afloat.
The HEROES Act provides much needed support from the American taxpayer to the American cattle producers in this difficult time. Powder River salutes our American ranchers and stands with you and will continue to provide the highest quality American-made cattle handling equipment.
Click here to watch a video(https://www.youtube.com/watch?v=4mOMUM_zBRs) from Dustin Holden, Powder River’s Controller.