USDA is making available another aid package to assist producers who have faced market disruptions and associated costs due to the COVID-19 pandemic. An additional $14 billion will be offered in a second round of Coronavirus Food Assistance Program (CFAP 2) payments. The sign-up period for CFAP 2 will end Dec. 11.
The sign-up period for the first round of CFAP payments was originally set to expire at the end of August, but was extended to Sept. 11. As of Sept. 21, USDA reported more than $10 billion has been paid out to more than 630,000 producers.
National Cattlemen’s Beef Association (NCBA) applauded the second round of USDA support.
“The initial CFAP payments served as an important stopgap in the immediate wake of the coronavirus,” said NCBA Vice President of Government Affairs Ethan Lane. “Unfortunately, many in our industry are still reeling from abnormal marketing decisions they were forced to make in the spring, unprecedented supply chain disruptions, and an overall tumultuous farm economy.”
CFAP 2
“We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted,” said USDA Secretary of Agriculture Sonny Perdue in a released statement.
CFAP 2 payments will be made for three categories of commodities: price trigger commodities; flat-rate crops; and sales commodities. Additional eligible commodities were added toward the end of the first CFAP round, and those will still be eligible in the second round.
CFAP payments will not be factored into CFAP 2’s payments—they will remain separate programs. CFAP addressed market disruptions through April 15, and CFAP 2 will address disruptions from April 16 and on. Producers who applied for CFAP aid may also apply for CFAP 2 aid.
Commodity categories
Price trigger commodities meet a minimum 5 percent decline over a specified period of time. Livestock are included in this category and eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock on a date selected by the producer between April 16 and Aug. 31. Breeding stock such as cows, bulls, and cull cows are not eligible classes of livestock for payments.
Beef cattle payments will be $55/head on eligible cattle, such as 2020-born calves and replacement stock such as females who have not calved and males who have not started breeding females. Breeding stock is not included in payments as the aid is intended to help with costs associated with market disruptions. Breeding stock are typically kept for longer periods of time and are less likely to be impacted by temporary market impacts.
Dairy cow payments will be based on actual milk production from April 1 to Aug. 31. The milk production for Sept. 1 through Dec. 31 will be estimated by the Farm Service Agency (FSA).
Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat. Payments will be based on 2020 planted acres of crops and will be the greater of either: the eligible acres multiplied by a payment rate of $15 per acre; or the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History approved yield.
Flat-rate crops that do not meet the 5 percent price decline or do not have data available will have payments calculated on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra-long staple cotton, oats, peanuts, rice, hemp, and several others.
Sales commodities include specialty crops, aquaculture, nursery crops, and floriculture. Other sales commodities that were not included in price trigger commodities or flat-rate crops include tobacco, goat milk, mohair, wool, and other livestock that were grown for food, fiber, fur or feathers (with the exception of breeding stock). Payments will be calculated by using a sales-based approach, where producers are paid based on five payment gradations based on their 2019 sales.
Eligibility
Each person or entity is limited to receiving $250,000 for all commodities combined. CFAP 1’s payments do not factor into the payment limit for CFAP 2.
Corporations, limited liability companies, and limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the operation. This payment limitation provision has been expanded to include trusts and estates for both rounds of CFAP.
Producers must certify they meet the adjusted gross income limitation of $900,000, unless at least 75 percent or more of their income is derived from farming, ranching, or forestry. Producers must also be in compliance with the highly erodible land and wetland conservation provisions.
How to apply
Producers may apply for CFAP 2 until Dec. 11. More information and application forms can be found at farmers.gov/cfap. Documentation may be requested to prove eligibility. Other eligibility forms such as those related to adjusted gross income and payment information can be found at farmers.gov/cfap/apply.
Producers who applied for CFAP 1 likely already have most documents on file, but should check with their local FSA office to see if any forms need to be updated. Producers who applied for CFAP 1 will not be automatically enrolled in the second round of aid; they must apply again.
For producers who are unsure where to get started when beginning the application process, it is recommended to contact a USDA employee at 877-508-8364 before contacting their local county FSA office. — Anna Miller, WLJ editor
