HURLOCK, Md.- Maryland Gov. Larry Hogan and Delaware Gov. John Carney appeared together Monday morning on Delmarva to announce twin chicken grower COVID-19 grant assistance programs.
“The poultry industry on Delmarva is second to none and it’s because of the long-standing working relationships that we have across state lines, especially when it comes to supporting our family farms,” said Carney. “COVID-19 has impacted all of us, but for the poultry growers who take pride in putting safe, nutritious food on your table, many of the roadblocks that COVID-19 threw at them were out of their control. This grant program is an opportunity once again for both our states to show our support for our family farms.”
“I am pleased to announce that we are immediately launching a new relief program which will provide direct payments to thousands of Maryland farmers, growers, and producers who have been hurt by COVID-19,” said Hogan. “Far too often our farmers don’t get the respect or the appreciation they deserve, but I want our entire ag community to know that your commitment to our state and to our ag industry does not go unnoticed.”
Growers are paid on their performance in raising the chickens on contract for our integrated poultry companies, but the actual ownership of the birds remains with the companies. Hoever, due to this technicality Delmarva's poultry growers are not eligible for USDA’s Coronavirus Food Assistant Program funds.
Details About Delaware's Program
The Delaware Department of Agriculture is administering the program and will be accepting applications until Dec. 1, 2020.
“Because of the disruption of markets, labor availability for the companies to run at full capacity in the processing plants, and other COVID-19 related impacts, Delaware growers were faced with longer than normal layout times and saw a decrease in the number of birds placed,” said Delaware Secretary of Agriculture Michael T. Scuse. “In some cases, farms were required to depopulate birds because a company did not have the ability to process the birds. All of these factors created significant reductions in grower pay and hardships for our family farms that are vital to our economy.”
The Delaware Contract Poultry Grower Grant Assistant Program will compensate contract poultry growers who:
- had an active grower contract in force on facilities located in Delaware on March 15 when COVID-19 impacted our state;
- have an approved CAFO permit or have filed a Notice of Intent for CAFO coverage; and
- do not have business interruption coverage for the losses covered by the grant program.
For poultry growers who meet these requirements, the grant program will compensate:
- $1,000 per poultry house, up to a maximum payment of $5,000 per farm.
- In addition, any grower that meets the above criteria, and had to depopulate birds remaining in-house for composting related to COVID-19 will receive another $1,500 per poultry house depopulated without cap.
Applications for the Delaware Contract Poultry Grower Grant Assistant Program are available online at agriculture.delaware.gov/grants-loans and will be accepted by the Delaware Department of Agriculture until December 1. Applicants must complete a W-9 form online (esupplier.erp.delaware.gov) prior to receiving payment.
Details About Maryland's Program
Under the Maryland Farmer COVID-19 Relief Program, the Maryland Department of Agriculture will issue direct payments of $1,000 per poultry house, up to five houses per farm. Growers whose flocks were depopulated during the pandemic will be eligible for an additional $1,500 per house.
Bonus Payments For Farmers. The new initiative will also offer a 15% bonus payment to any Maryland farmer who received federal funding through the first round of CFAP payments. CFAP provides financial assistance to producers of agricultural commodities who have suffered a 5% or greater price decline, or who had losses due to market supply chain disruptions related to the COVID-19 pandemic. The State of Maryland distributed nearly $24 million through the first round of CFAP payments and has distributed more than $16 million in the second round of the program.
Who is eligible?
Contract poultry growers are eligible for direct payments of $1,000 per poultry house (capped at five houses). Poultry growers whose flocks were depopulated during the pandemic are eligible for an additonal $1,500 per house. Maryland farmers who received federal funding from the first round of CFAP payments are eligible for a 15% bonus payment. How to apply:
For more information, or to apply online for the Maryland Farmer COVID-19 Relief Program, visit https://mda.maryland.gov/pages/farmer-relief.aspx.
Following Monday's announcement, Delmarva Poultry Industry, Inc., Executive Director Holly Porter said, “This announcement recognizes how crucial the chicken community is to Delmarva’s economy, and it acknowledges chicken growers faced sudden business disruptions none of them could have foreseen or prevented. "The chicken industry never called time out during the COVID-19 pandemic, and the food web held together under real stress. Chicken growers saw significant income interruptions, and while federal aid has helped repair balance sheets for other U.S. farmers, contract chicken growers have been left on the sidelines. With this grant program, Gov. Carney and Gov. Hogan are delivering real assistance to farmers who suffered losses from COVID-19, and DPI applauds their commitment to the chicken community.”
Chicken companies in Delaware and Maryland placed 45 percent fewer chicks in farmers’ chicken houses in early May, after quarantine measures and business closures took effect around the country, than those companies had placed two months earlier. Only 6 million chicks were placed in family farmers’ chicken houses in Delaware and Maryland the first week of May, a significant decline compared to the 10.7 million chicks placed on those farms in the first week of March. That drop in chicks placed represents lost income for Delmarva’s more than 1,300 farmers raising chicken in contractual agreements with chicken processing companies. DPI statistics about the Delmarva chicken industry for 2019 -- the most recent year data are available - can be found here.
