991103 USDA Hog Loan Moratorium Continues Amid OversupplyNovember 1, 1999Washington - USDA said it would continue indefinitely a moratorium on loans for building or expanding hog facilities due to the oversupply of hogs. The moratorium was first announced by USDA in January, shortly after hog prices plunged to Depression-lows of less than 10 cents per pound. Prices have since recovered somewhat to break-even levels for many producers, but the U.S. pork industry estimates that some $4 billion has been lost by farmers. Pork prices are expected to remain depressed for at least another 18 months, according to USDA and private analysts. "We cannot justify adding to the current oversupply of hogs in today's market," said Keith Kelly, administrator of the USDA's Farm Service Agency. "Farmers are going out of business because of it, and other USDA programs are expending resources to fight it." USDA said it would continue to make and guarantee loans for routine production and other recurring expenses for hog farmers.
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