USDA Announces Additional Assistance for COVID-19 Market Disruptions
CFAP Payments for Cattle Producers Reopen in April

[March 26, 2021]   Agriculture Secretary Tom Vilsack announced that USDA is establishing new programs and efforts to bring financial assistance to producers who felt the impact of COVID-19 market disruptions. The new initiative—USDA Pandemic Assistance for Producers—will reach a broader set of producers than in previous COVID-19 aid programs. USDA is dedicating at least $6 billion toward the new programs.

USDA will reopen sign-up for CFAP 2 for at least 60 days beginning on April 5, 2021. The payments announced today (under Part 3, below) will go out under the existing CFAP rules; however, future opportunities for USDA Pandemic Assistance will be reviewed for verified need and during the rulemaking process, USDA will look to make eligibility more consistent with the Farm Bill.

USDA Pandemic Assistance for Producers – 4 Parts Announced

Part 1: Investing $6 Billion to Expand Help & Assistance to More Producers

USDA will dedicate at least $6 billion to develop a number of new programs or modify existing proposals using discretionary funding from the Consolidated Appropriations Act and other coronavirus funding that went unspent by the previous administration. Where rulemaking is required, it will commence this spring. These efforts will include assistance for euthanized livestock and poultry.

Part 2: Adding $500 Million of New Funding to Existing Programs

USDA expects to begin investing approximately $500 million in expedited assistance through several existing programs this spring, with most by April 30. This new assistance includes:

• $75 million in additional funding for the Farmers Opportunities Training and Outreach program, administered by the National Institute of Food and Agriculture (NIFA) and the Office of Partnerships and Public Engagement, which encourages and assists socially disadvantaged, veteran, and beginning farmers and ranchers in the ownership and operation of farms and ranches.

• $100 million in additional funding for the Local Agricultural Marketing Program, administered by the AMS and Rural Development, which supports the development, coordination and expansion of direct producer-to-consumer marketing, local and regional food markets and enterprises and value-added agricultural products.

• $20 million for the Animal and Plant Health Inspection Service to improve and maintain animal disease prevention and response capacity, including the National Animal Health Laboratory Network.

Part 3: Carrying Out Formula Payments under CFAP 1, CFAP 2, CFAP AA

The Consolidated Appropriations Act, 2021, enacted December 2020 requires FSA to make certain payments to producers according to a mandated formula. USDA is now expediting these provisions.

USDA is implementing an increase in CFAP 1 payment rates for cattle based on the number of cattle in inventory between April 16, 2020, to May 14, 2020. Cattle producers with an approved CFAP 1 applications will automatically receive these payments. The following payment rates will be used:

Eligible producers do not need to submit a new CFAP 1 application form or take any action. Only producers who previously applied for CFAP 1 are eligible to receive this additional payment.

Part 4: Reopening CFAP 2 Sign-Up to Improve Access & Outreach to Underserved Producers

As noted above, USDA will re-open sign-up for of CFAP 2 for at least 60 days beginning on April 5, 2021.

As a reminder for beef cattle, CFAP 2 payments will be equal to:

• The producer’s owned inventory of eligible beef cattle, excluding breeding stock, on a date selected by the producer from April 16, 2020, through August 31, 2020,

• Multiplied by the payment rate of $55 per head, up to $250,000 or 4,546 head per producer.

Operations can qualify for up to three payment limitations if they provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities.

• Two payment limits = $500,000 or 9,091 head.

• Three payment limits = $750,000 or 13,636 head.

More information on CFAP 2 eligibility and payment details related to livestock can be found at www.farmers.gov/
cfap2/livestock.

Please stay tuned for additional information and announcements under the USDA Pandemic Assistance to Producers initiative, which will help to expand and more equitably distribute financial assistance to producers and farming operations during the COVID-19 national emergency. Please visit www.farmers.gov for more information on the details of today’s announcement.

[Illinois Beef Association]