Source: NCDA&CS, 4/23/20

Coronavirus Food Assistance Program (CFAP) announced by USDA last Friday.  Topline information is below:

Direct Assistance for Farmers and Ranchers
USDA will provide $16 billion in direct payments to farmers and ranchers including:
• $9.6 billion for the livestock industry
o $5.1 billion for cattle
o $2.9 billion for dairy
o $1.6 billion for hogs
• $3.9 billion for row crop producers
• $2.1 billion for specialty crops producers
• $500 million for other crops

Producers will receive a single payment determined using two calculations:
• Price losses that occurred January 1-April 15, 2020. Producers will be compensated for 85% of price loss during that period.
• Second part of the payment will be expected losses from April 15 through the next two quarters, and will cover 30% of expected losses.

The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity. Qualified commodities must have experienced a 5% price decrease between January and April. 

Aquaculture is not included.  The US Department of Commerce received $300 million from the CARES Act for aquaculture and USDA is working with them to see how they will utilize those funds.

The rules for the program, which will give us more information, are expected to be published in early May.  Sign-ups will run through county FSA offices.

Commodity Purchase/Food Box Distribution Program
USDA will provide $ 3 billion for commodity purchases (including meat, dairy and produce) to support producers and provide food to those in need. USDA will work with local and regional distributors who are used to servicing the food industry to deliver food to food banks, as well as community and faith-based organizations.  USDA will start with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products.

The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits.  USDA plans to release a solicitation for distributors to submit a proposal no later than Monday.  More information about the Food Box Distribution Program can be found here. 

USDA’s announcement of CFAP is here.  As we get more information, and as the rules are published, we will make sure you are aware.  In the meantime, please let us know if you have any questions or concerns.