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CCFB News» October 2020

CFAP 2 Details Announced

10/03/2020 @ 3:45 pm

In September, the Trump administration announced details of the new $14-billion-dollar Coronavirus Food Assistance Program, or CFAP2, that will provide direct payments to farmers and ranchers to partially offset COVID-19-related losses for producers. This follows an estimated $10 billion in support provided to cattle, hog, dairy, non-specialty crop, specialty crop and other producers to offset COVID-19 related losses experienced through mid-April 2020.  Sign-up for CFAP2 runs Sept. 21 through Dec. 11 through USDA’s Farm Service Agency county offices.

 

Members are encouraged to visit farmers.gov/cfap for additional information and application forms.

Of the $14 billion dollars in CFAP2 support, USDA’s cost-benefit analysis estimates corn producers will receive $3.5 billion, or 25% of the total CFAP2 resources. Following corn, beef cattle producers are expected to receive $2.8 billion, or 20% of CFAP2 funding. Dairy farmers are expected to receive $2 billion, or 14% of the available support. Hog producers are estimated to receive $1.7 billion or 12% of CFAP2. Soybean producers are estimated to receive $1.4 billion, or 10% of the funds. Wheat, flat-rate crops, eggs and other commodities are expected to receive $2.5 billion, or 18% of the CFAP2 support.

 

Sales Commodities

Sales commodities include specialty crops, aquaculture, nursery crops and floriculture, and other commodities not included in the price trigger and flat-rate categories, such as goat milk, mohair, wool, and specialty livestock not included under the price trigger category that were grown for food, fiber, fur or feathers. Specialty livestock eligible for CFAP2 consists of animals commercially raised for food, fur, fiber or feathers and includes: alpacas, bison, buffalo, beefalo, deer, ducks, elk, emus, geese, goats, guinea pigs, llamas, mink (including pelts), mohair, ostrich, pheasants, quail, rabbits, reindeer and turkey. Specialty livestock excludes all equine, breeding stock, companion or comfort animals, pets and animals raised for hunting or game purposes.

 

Payment calculations will use a sales-based approach, where producers are paid based on five different payment percentages associated with their 2019 sales. Payments for aquaculture eligible for CFAP2 will be based on the producer’s 2019 sales of eligible commodities and will be equal to the amount of the producer’s eligible sales in calendar year 2019, multiplied by the payment rate for that range.

 

Summary

The second round of the Coronavirus Food Assistance Program helps producers offset COVID-19-related price declines for livestock, dairy, and specialty and non-specialty crops. Sign-up for the $14 billion in direct support to farmers runs from Sept. 21 through Dec. 11. Producers interested in signing up can do so at USDA’s FSA county offices.  Additional details about requirements for program participation can be found on USDA’s CFAP website, www.farmers.gov/cfap. This program is an important down payment in helping farmers and ranchers deal with the unprecedented and unexpected economic fallout related to COVID-19 and is a step in the right direction to helping to make farmers and ranchers whole again.

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