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Source: USDA, 5/19/20 U.S. Secretary of Agriculture Sonny Perdue today announced details
of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16
billion in direct payments to deliver relief to America’s farmers and ranchers
impacted by the coronavirus pandemic. In addition to this direct support to
farmers and ranchers, USDA’s Farmers to Families Food Box program is
partnering with regional and local distributors, whose workforces have been
significantly impacted by the closure of many restaurants, hotels, and other
food service entities, to purchase $3 billion in fresh produce, dairy, and meat
and deliver boxes to Americans in need. “America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary Perdue. “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 U.S. Department of Agriculture (USDA), through the Farm Service
Agency (FSA), will be accepting applications from agricultural producers who
have suffered losses. Background: CFAP
provides vital financial assistance to producers of agricultural commodities
who have suffered a five-percent-or-greater price decline due to COVID-19 and
face additional significant marketing costs as a result of lower demand, surplus
production, and disruptions to shipping patterns and the orderly marketing of
commodities. Farmers
and ranchers will receive direct support, drawn from two possible funding
sources. The first source of funding is $9.5 billion in appropriated funding
provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to
compensate farmers for losses due to price declines that occurred between
mid-January 2020, and mid-April 2020 and provides support for specialty crops
for product that had been shipped from the farm between the same time period
but subsequently spoiled due to loss of marketing channels. The second funding
source uses the Commodity Credit Corporation Charter Act to compensate
producers for $6.5 billion in losses due to on-going market disruptions. Non-Specialty Crops and Wool Non-specialty 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 January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates. Livestock 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 January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head. Dairy For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 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.
Specialty Crops For
eligible specialty crops, the total payment will be based on the volume of
production sold between January 15 and April 15, 2020; 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. Eligibility 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 percent 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. Applying for Assistance Producers
can apply for assistance beginning on May 26, 2020. 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 August 28, 2020. Payment Structure To
ensure the availability of funding throughout the application period, producers
will receive 80 percent 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. 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.
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