Sign-up for the Coronavirus Food Assistance Program (CFAP) began May 26, and as of June 8, USDA reported more than 80,000 producers have received payments. Over $1 billion in producer payments has been distributed so far.
CFAP funding is comprised of two components: $16 billion in direct aid to producers and $3 billion for USDA purchases of produce, dairy, and meat.
In order to be eligible for the program, a producer must have demonstrated a loss of more than 5 percent during the COVID-19 pandemic. Eligible commodities include cattle, hogs, sheep under two years old, dairy, wool, and crops.
Payments are limited to $250,000 per person or entity. In the first round of payments, USDA is promising only 80 percent of total funds to accepted applicants. If there is funding left after the first round, the additional 20 percent will be given. Applications are being accepted until Aug. 28.
If you think you may be eligible for payments, it’s not too late to apply.
“We have tools and resources available to help producers understand the program and enable them to work with Farm Service Agency staff to complete applications as smoothly and efficiently as possible and get payments into the pockets of our patriotic farmers,” USDA Secretary of Agriculture Sonny Perdue said.
In the first week of the application period, USDA made payments to more than 35,000 producers. The top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska, and South Dakota.
Signing up
For those interested in applying for assistance, it is recommended to speak with a USDA employee first for general assistance. One-on-one support can be reached at 877-508-8364. After speaking with an employee, USDA recommends contacting a local Farm Service Agency office. Producers can download the application at farmers.gov/cfap and also use a payment calculator to determine the records needed to apply.
Producers will self-certify their records, but may be asked to provide documentation to support their claims.
Upon distribution of some CFAP funds, the U.S. Cattlemen’s Association (USCA) submitted a letter to Congress, concerned with the current program framework. The organization also asked for cattle producers to receive additional funding in the next coronavirus relief package.
In the letter, USCA said the group’s economic impact report demonstrated approximately $14.6 billion in losses to the cattle industry, and CFAP payments will only amount to around $5.5 billion in payments.
USCA also notes cattle producers did not receive support from the Market Facilitation Program during ongoing trade conflicts.
“The security of our food system, and thus our nation, is at risk should more producers be driven to bankruptcy in the midst of a global health crisis,” the letter read.
In addition to the funding gap disparity, USCA recommended changes for future coronavirus aid packages.
The group asked the time frame for payment eligibility to include total sales of livestock from Jan. 15 to May 15, as opposed to CFAP’s timeframe of Jan. 15 to April 15. In addition, USCA asked that actual losses be covered, instead of the program’s 25 percent coverage of the drop in cattle inventory.
Finally, the group said $250,000 payment caps “stifle the program’s ability to address actual losses, especially for small and mid-sized producers.” — Anna Miller, WLJ editor
