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 Background:
The U.S. Department of Agriculture (USDA) will use funds being
made available from the Commodity Credit Corporation (CCC)
Charter Act and CARES Act to support row crops, livestock,
specialty crops, dairy, aquaculture and many additional
commodities. USDA has incorporated improvements in CFAP 2 based
from stakeholder engagement and public feedback to better meet
the needs of impacted farmers and ranchers.
Producers can apply for CFAP 2 at USDA’s Farm Service Agency
(FSA) county offices. This program provides financial assistance
that gives producers the ability to absorb increased marketing
costs associated with the COVID-19 pandemic. Producers will be
compensated for ongoing market disruptions and assisted with the
associated marketing costs.
CFAP 2 payments will be made for three categories of commodities
– Price Trigger Commodities, Flat-rate Crops and Sales
Commodities.
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 (APH)
approved yield. If the APH is not available, 85 percent of the
2019 Agriculture Risk Coverage-County Option (ARC-CO) 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, 2020, to August 31, 2020. The milk
production for September 1, 2020, to December 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 April 16, 2020, and August 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.
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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, we encourage you to 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 for Assistance
Producers can apply for assistance through December 11, 2020.
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 USDA
employee ready to offer assistance. This is a recommended first
step before a producer engages with the team at the FSA county
office.
All USDA Service Centers are open for business, including some
that are open to visitors to conduct business in person by
appointment only. All Service Center visitors wishing to conduct
business with FSA, Natural Resources Conservation Service or any
other Service Center agency should call ahead and schedule an
appointment. Service Centers that are open for appointments will
pre-screen visitors based on health concerns or recent travel,
and visitors must adhere to social distancing guidelines.
Visitors are also required to wear a face covering during their
appointment. Our program delivery staff will be in the office,
and they will be working with our producers in the office, by
phone and using online tools. More information can be found at farmers.gov/coronavirus.
[USDA Farm Service Agency] |
