Home » Producer Programs » Hog Farm Transition Program
The Hog Farm Transition Program is a $75 million initiative designed to help eligible producers by providing payments to those who agree to set aside all hog production in their enterprise for a minimum of three years.
The program is open to all hog producers that were in the business of hog production as of April 1, 2009 and are willing to set aside their entire hog production facilities for a minimum of three years.
Producers must apply for the program using the legal structure (i.e. sole proprietorship, partnership, corporations) of their operations as of August 1, 2009.
The program will operate through a national tendering process, with a number of tendering opportunities to be provided.
Eligible producers will submit bids to the Program Administrator reflecting the dollar amount they would be willing to accept to idle their facilities for three years.
Each bid will be converted to a per animal unit basis to allow for comparisons between different types and sizes of farms. Lowest per animal unit bids will be accepted first and remaining bids will be accepted until funds have been exhausted.
Program funds will be available through a series of tenders. The precise dates and the funding for each tender will be determined as the program progresses.
Payments will be made upon confirmation that the barns have been emptied. Interim payments may be issued upon request after the acceptance of a bid.
Participants must be the owners of the pigs. Participants must also own the barns where the pigs are being raised or have signed agreements with the barn owners stating the owners commit to idle their production facilities for three years following complete depopulation. Agreements between pig owners and barn owners must be disclosed to the Program Administrator to allow for payment splitting between the owners of the hogs and the owners of the barns.
Registration forms will be available October 8, 2009. Dates for each tendering period will be announced prior to the deadline for tender.
While producers can apply for both the Hog Industry Loan Loss Reserve Program (HILLRP) and the HFTP, they can only receive benefits (payments or loans) from one.