USDA Announces New Round of CFAP Payments

On September 17, USDA Secretary Sonny Perdue announced an expansion of the Coronavirus Food Assistance Program, known as “CFAP 2.” This follows the first round of coronavirus assistance, which opened in May 2020.

There are a wide variety of commodities eligible for assistance under CFAP 2. Here are some of the commodities relevant to the Northeast:

• Dairy: Payments for cow milk will be equal to:
  Producer’s actual total milk production from April 1, 2020 to August 31, 2020
  x multiplied by $1.20 per hundredweight (cwt.), plus
  producer’s estimated milk production from September 1 to December 31, 2020
  x multiplied by $1.20 per cwt.

For dairy beef, producers are eligible for a cattle inventory payment on bull calves and dairy steers, but not for breeding stock. The beef payment is $55 per head on eligible cattle in inventory on a date selected by the producer between April and the end of August.

• Row crops including corn, soybeans and others: Payments for eligible row crops will be the greater of:
  Eligible acres of the crop multiplied by $15 per acre, or
  eligible acres of the crop multiplied by a nationwide crop marketing percentage, a crop-specific payment rate, and then by the producer’s weighted 2020 actual production history approved yield.

• Wool: Payments will be based on the producer’s 2019 sales multiplied by a payment rate ranging from 10.6% to 8.8%, depending on sales volume.

• Livestock such as beef cattle, hogs and lambs: Payments will be calculated by a given rate per head for various categories of livestock.

• More than 230 fruit, vegetable, horticulture and tree nut commodities are eligible for CFAP 2, along with honey and maple sap. Payments will generally be based on the producer’s 2019 sales of eligible commodities and will range from 10.6% to 8.8%.

• Floriculture and nursery crops: Cut flowers and nursery crops grown in containers or a controlled environment for commercial sales are eligible, as well as Christmas trees. Payments will be based on the producer’s 2019 sales.

• Aquaculture products are eligible for payments based on the producer’s 2019 sales.

• Broilers and eggs: For broilers, payments will equal 75% of the producer’s 2019 production multiplied by $1.01 per bird. Payments for eggs will equal $0.05 per dozen shell eggs, or other rates for liquid, dried or frozen eggs.

• Tobacco: Payments will range from 10.6% to 8.8% of the producer’s 2019 sales.

• Hay and crops intended for grazing are not eligible.

Limitations and restrictions apply. For more information, visit: https://www.farmers.gov/cfap or contact your local Farm Service Agency office. Applications will be accepted from September 21 through December 11, 2020.

USDA’s Farm Service Agency will be holding an informational webinar on Thursday, September 24 at 3:00 PM EDT. Click here to register.