Another 115 successful bidders in the federal government’s hog farm transition program (HFTP) will share a total of $24.504 million to fold up hog operations for at least three years.
Results were announced Monday from the HFTP’s second tender, in which the weighted average of bids jumped to $872.91 per animal unit equivalent (AUE), with accepted bids ranging from $370 to $1,034.23.
Successful bidders will now remove from production a total of 43,182 sows, 99,469 weaners (weighing up to 30 kg) and 123,654 hogs between 31 kg to market weight.
Out of 469 bids submitted for the second tender, held last Wednesday (Dec. 9), the “lowest bids were accepted first, followed by successively higher bids until the funds for that tender were exhausted,” the HFTP’s administrator, the Canadian Pork Council, said in a release.
In order for bids to be compared among all types of animals and facilities, a system to equitably compare bids was developed in which each total farm bid submitted was converted to a dollar per AUE.
Another $25 million in HFTP funds have been allocated for the program’s third tender, to be held Jan. 20 at 2 p.m. EST.
Farmers who aren’t already registered are asked to submit their forms no later than Jan. 13 for the third tender window, the council said.
The date hasn’t yet been set for the HFTP’s fourth and final tender, in which about $15 million in remaining program funds will be allocated. That date will be announced next month, the pork council said Monday.
Producers need only register once to be approved for all program tendering opportunities but must submit a new bid for each tender date, the council said.
The council on Monday also slightly revised most of its data upward from the results of the HFTP’s first tender. That tender resulted in 75 successful bids (up from the 74 reported Nov. 9), taking a weighted average bid of $767.28 per AUE. Low and high bids were $300 and $997 per AUE respectively.
The total inventory to be removed from production through the first tender is now to include 22,777 sows, 45,664 weaners and 60,903 hogs between 31 kg and market weight.
Successful bids from the first tender took up about $10.55 million from the HFTP’s total $75 million budget.