• Paul Goeringer

USDA Announces Additional Support Available Through CFAP

Updated: Feb 1


Tractor and planter by Edwin Remsberg

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Please note that this additional assistance was recently put on hold by USDA pending a review by the Biden Administration. USDA will continue to accept applications during the review period.


USDA recently announced additional assistance to growers impacted by disruptions due to COVID-19 through the Coronavirus Food Assistance Program (CFAP). The program will make certain contract livestock, including contract poultry growers, and turfgrass sod growers eligible for financial assistance with CFAP 2. Other eligible producers of aquaculture, nursery crops, row crops, specialty crops, specialty livestock, and tobacco who signed up for payments before the original closing date of Dec. 11, 2020, are also now eligible for updated payment calculations for CFAP 2. Swine producers will receive a top-up payment on CFAP 1. Producers will have till February 26, 2021, to apply for the assistance, and swine producers will not need to do anything to receive the top-up payment.


Contract Growers


The initial CFAP programs excluded contract livestock and poultry producers, but many had faced market disruptions due to COVID-19 shutting down processing facilities, leading many companies to depopulate livestock and poultry. To be eligible for the additional assistance, contract growers must show they:

  1. Have raised broilers, pullets, layers, chicken eggs, turkeys, hogs, or pigs under a contract in 2019 and 2020;

  2. Can demonstrate a drop in revenue for the period from January 1, 2020, through December 27, 2020, as compared with the period from January 1, 2019, through December 27, 2019; and

  3. Can provide a copy of the contract.

For example, a contract poultry grower had revenue in 2019 of $90,000, but $70,000 for the same period in 2020. Under the CFAP 2, the contract poultry grower would be eligible for a payment of $16,000, or $90,000 minus $70,000 equals $20,000 times 80 percent.


Poultry house on Eastern Shore by Edwin Remsberg

Turfgrass Sod


Turfgrass sod growers are now eligible for assistance through CFAP. Eligible turfgrass sod growers will receive a payment based on:

  1. The amount of the producer’s eligible sales in the calendar year 2019, plus crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments received for the crop year 2019, multiplied by

  2. The payment rate for that range in Appendix 1.

For example, if a turfgrass sod grower had eligible sales, including other allowed payments in 2019 of $55,000, the grower would receive a CFAP payment of $5,445, or $55,000 times 9.9 percent.


Aquaculture, Nursery and Floriculture, Specialty Crops, and Specialty Livestock


Farm Service Agency (FSA) updated the payment calculations for aquaculture, nursery crops, floriculture, specialty crops, specialty livestock, and tobacco. Payment calculations for each of these will now include crop insurance indemnities and Noninsured Crop Disaster Assistance Program (NAP) payments. For nursery crops, floriculture, specialty crops, specialty livestock, and tobacco, payment calculation will include payments from the Wildfire and Hurricane Indemnity Program Plus (WHIP+). CFAP payments will now be calculated on 2019 eligible sales, NAP payments, crop insurance indemnities, and WHIP+ payments (if applicable) multiplied by the payment rate in Appendix 1.


Row Crops


FSA has also updated the payment calculator for producers growing barley, corn, sorghum, soybeans, sunflowers, upland cotton, and wheat to include those who had crop insurance coverage but did not have an available 2020 Actual Production History approved yield. FSA will now use 100 percent of the 2019 Agriculture Risk Coverage-County Option benchmarked yield for those producers.


Corn harvest by Edwin Remsberg

Swine Producers


Swine producers with approved CFAP 1 applications will receive a top-up payment of $17 per head to cover an additional 25 percent of the estimated total economic loss. This top-up payment is to fix the large difference between the first quarter sales loss rates and the CFAP 1 inventory payment rates for swine. Those with approved CFAP 1 applications will need to do nothing to receive this payment. Those without approved CFAP 1 applications for swine will not be eligible.


Signup


FSA will accept new or modified applications for CFAP from January 19 to February 26, 2021. Signup can take place online or by making an appointment with your local FSA Office. You can get more details on the program at www.farmers.gov/cfap.


Image of Appendix 1 by Paul Goeringer


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