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(Washington, D.C., May 19, 2020) –
U.S. Secretary of Agriculture Sonny Perdue today announced details of the
Coronavirus Food Assistance Program (CFAP), which will provide up to $16
billion in direct payments to deliver relief to America’s farmers and ranchers
impacted by the coronavirus pandemic. In addition to this direct support to
farmers and ranchers, USDA’s Farmers to Families Food Box
program is partnering with regional and local distributors, whose
workforces have been significantly impacted by the closure of many
restaurants, hotels, and other food service entities, to purchase $3
billion in fresh produce, dairy, and meat and deliver boxes to Americans in
need.
“America’s farming community is facing an unprecedented situation
as our nation tackles the coronavirus. President Trump has authorized USDA
to ensure our patriotic farmers, ranchers, and producers are supported and
we are moving quickly to open applications to get payments out the door and
into the pockets of farmers,” said Secretary Perdue. “These payments will
help keep farmers afloat while market demand returns as our nation reopens
and recovers. America’s farmers are resilient and will get through this
challenge just like they always do with faith, hard work, and
determination.”
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 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. 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.
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