A new Coronavirus Food Assistance Program (CFAP) announced May 19 will provide up to $16 billion in direct payments to farmers and ranchers.
Along with payments, the U.S. Department of Agriculture’s Farmers to Families Food Box program is partnering with local distributors impacted by restaurant closures to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.
“We are moving quickly to open applications to get payments out the door and into the pockets of farmers,” USDA Secretary Sonny Perdue said in a news release. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work and determination.”
Beginning May 26, the USDA Farm Service Agency (FSA) will be accepting applications from agricultural producers who have suffered losses.
Crops and wool
Crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of Jan. 15. A payment will be made based on half of a producer’s 2019 total production or the 2019 inventory as of Jan. 15, whichever is smaller, multiplied by the commodity’s applicable payment rates.
Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between Jan. 15 and April 15, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, multiplied by the payment rate per head.
For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of 2020 multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter.
For eligible specialty crops, the total payment will be based on the volume of production sold between Jan. 15 and April 15, the volume of production shipped but unpaid, and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.
There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75% or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.
To ensure the availability of funding throughout the application period, producers will receive 80% of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.
Applying for assistance
Producers can apply for assistance beginning on May 26. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through Aug. 28.
USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.