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 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 on 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.
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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.
[USDA Farm Service Agency] |
