Coronavirus Food Assistance Program (CFAP) for Ag Producers
The USDA announced details on the CFAP for ag producers with the application going live on May 26. The $16 billion relief is for farmers and ranchers who faced price declines and additional marketing costs as a result of the coronavirus pandemic.
Eligible Commodities:
- Non-specialty crops and wool – malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, hard red spring wheat, and wool
- Livestock – cattle, lambs, yearlings, and hogs
- Dairy
- Specialty Crops
- Fruits: apples, avocados, blueberries, cantaloupe, grapefruit, kiwifruit, lemons, oranges, papaya, peaches, pears, raspberries, strawberries, tangerines, tomatoes, watermelons
- Vegetables: artichokes, asparagus, broccoli, cabbage, carrots, cauliflower, celery, sweet corn, cucumbers, eggplant, garlic, iceberg lettuce, romaine lettuce, dry onions, green onions, peppers, potatoes, rhubarb, spinach, squash, sweet potatoes, taro
- Nuts: almonds, pecans, walnuts
- Other: beans, mushrooms
Commodities that did not suffer a five percent-or-greater price decline from mid-January 2020 to mid-April 2020 are not eligible for CFAP.
Payments
Eligible farmers and ranchers will receive one CFAP payment from either:
- the $9.5 billion in funds from the CARES act to compensate for losses due to price declines that occurred between January 15 to April 15, 2020 and for specialty crops for product that was shipped and spoiled for unpaid product.
- Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.
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.
There is a payment limitation of $250,000 per person or entity for all commodities combined. Corporations, LLCs, or LLPs may qualify for additional payments if members provide personal labor or management for the farming operation.
How To Prepare
USDA will begin taking applications for CFAP on May 26. While the application process has not started, you can start gathering and understanding your farm’s recent sales and inventory.
Your local FSA staff will work with you to apply for the program, and through forms that will ask for the following information:
- Name and address
- Personal information, including your Tax Identification Number
- Farm operating structure
- Adjusted Gross Income compliance certification to ensure eligibility
- Direct deposit to enable payment processing
APPLICATION AND VIDEO USDA FREQUENTLY ASKED QUESTIONS
Questions? Contact one of our ag experts at (888) 388-1040.
This article was last updated 5-20-20 at 2 pm.
