WASHINGTON — President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue said Sept. 18 up to an additional $14 billion dollars is available for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.
Sign-up for the Coronavirus Food Assistance Program (CFAP 2) will begin Sept. 21 and run through Dec. 11.
“America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic. President Trump is once again demonstrating his commitment to ensure America’s farmers and ranchers remain in business to produce the food, fuel, and fiber America needs to thrive,” said Secretary Perdue.
“We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted.”
Price trigger commodities
Price trigger commodities are major commodities that meet a minimum 5 percent price decline over a specified period of time. Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat.
Payments will be based on 2020 planted acres of the crop, excluding prevented planting and experimental acres.
Payments for price trigger crops will be the greater of: 1) the eligible acres multiplied by a payment rate of $15 per acre; or 2) the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History approved yield.
If the Actual Production History is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option benchmark yield for that crop will be used.
For broilers and eggs, payments will be based on 75 percent of the producers’ 2019 production.
Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31, 2020. The milk production for Sept. 1, 2020, to Dec. 31, 2020, will be estimated by FSA.
Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between Apr. 16, 2020, and Aug. 31, 2020.
Flat-rate crops
Crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed and several others.
Sales commodities
Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur or feathers.
Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales. Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program.
If your agricultural operation has been impacted by the pandemic since April 2020, you can apply for CFAP 2.
A complete list of eligible commodities, payment rates and calculations can be found on farmers.gov/cfap.
Eligibility
There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation.
In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.
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
Producers can apply for assistance beginning Sept. 21. Applications will be accepted through Dec. 11.
Additional information and application forms can be found at farmers.gov/cfap.
Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply.
For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.
Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a United States Department of Agriculture employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.
