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 Producers who are now eligible and those who need
to modify existing applications due to these updates can contact
USDA’s Farm Service Agency (FSA) between January 19 and February 26,
2021. Some of these changes are being made to align with the
recently enacted Consolidated Appropriations Act of 2021 while
others are discretionary changes being made in response to ongoing
evaluation of CFAP.
Background:
Expanded Eligibility for CFAP 2
Contract producers of swine, broilers, laying hens, chicken eggs and
turkeys who suffered a drop in revenue in 2020 as compared to their
2019 revenue because of the pandemic now are eligible for
assistance. Producers could receive up to 80% of their revenue loss,
subject to the availability of funds.
Producers of pullets and turfgrass sod also now are eligible for
CFAP payments. The commodities were not explicitly included in the
initial CFAP 2 rule. Payments are based on eligible sales and the
payment calculation in the updated rule includes crop insurance
indemnities, Noninsured Crop Disaster Assistance Program (NAP), and
Wildfire and Hurricane Indemnity Program – Plus (WHIP+) payments.
Updated Payment Calculations for CFAP 2
Similarly, FSA adjusted the payment calculation to use the
producer’s eligible 2019 calendar year sales, and 2019 crop
insurance indemnities, NAP, and WHIP+ payments, multiplied by the
applicable payment rate for all sales commodities, which include
specialty crops, aquaculture, tobacco, specialty livestock, nursery
crops and floriculture, for CFAP 2. Producers who applied during the
sign-up period that closed December 11, 2020, can modify an existing
CFAP 2 application between January 19 and February 26, 2021.
Additionally, FSA adjusted the payment calculation
for certain row crops for CFAP 2, specifically those where a
producer had crop insurance coverage but not an available 2020
Actual Production History (APH) approved yield. FSA is now using
100% of the 2019 Agriculture Risk Coverage-County Option (ARC-CO)
benchmark yield to calculate payments when an APH is not available
rather than 85%, which was in the original CFAP 2 calculations.
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This calculation changes only for producers with crop
insurance coverage who grow barley, corn, sorghum, soybeans,
sunflowers, upland cotton and wheat. Producers who applied during
the sign-up period that closed December 11, 2020, can modify an
existing CFAP 2 application between January 19 and February 26,
2021.
CFAP 1 ‘Top-up’ Payments for Swine
FSA is providing an additional CFAP 1 inventory payment for swine to
help producers who face continuing market disruptions from changes
in U.S. meat consumption due to the pandemic. Swine producers with
approved CFAP 1 applications will soon automatically receive a
“top-up” payment of $17 per head increasing the total CFAP1
inventory payment to $34 per head.
More Information
Newly eligible producers who need to submit a CFAP 2 application or
producers who need to modify an existing one, due to these updates,
can do so between January 19 and February 26, 2021, by contacting
their local USDA Service Center. New applicants can also obtain
one-on-one support with applications by calling 877-508-8364.
In addition to the changes being made to CFAP, per language in the
Consolidated Appropriations Act of 2021, FSA will extend 2020
Marketing Assistance Loans to provide additional flexibilities for
farmers. FSA is also preparing to move forward on implementation of
the remaining provisions of the recently passed Consolidated
Appropriations Act of 2021.
To learn more about this additional assistance, visit farmers.gov/cfap.
[USDA Farm Service Agency]
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