USDA Coronavirus Food Assistance Program Issues Additional Funding

The United States Department of Agriculture (USDA) has announced the second round of direct farmer assistance, the Coronavirus Food Assistance Program 2 (CFAP 2). This wide-reaching program covers hundreds of commodities, including specialty and non-specialty crops and livestock.

CFACP 2 offers additional funding for agricultural producers facing continued market interruptions and added costs due to the COVID-19 pandemic. Applications are currently underway and are open until December 11, 2020.

Payments will be made for three categories of commodities:

1. Price Trigger Commodities: Commodities that meet a minimum 5% price decline over a specified period of time. Payments will be based on 2020 planted acres of the crop.
2. Flat-rate Crops: Crops that either do not meet the 5% price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, hemp, and many others.
3. Sales Commodities: Includes specialty crops such as aquaculture, nursery crops, floriculture, livestock (excluding breeding stock) and several more. Payment calculations will use a sales-based approach where producers are paid based on five payment gradations associated with their 2019 sales (see below from the chart extracted from the USDA).

This program was created to support producers that grow row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, LLCs and LLPs may qualify for additional payment limits if members actively provide personal labor or personal management in the farming operation. In addition, applicants will be required to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75% or more of their income is derived from farming, ranching or forestry-related activities.

There are a few ways to apply for the CFACP 2 funding:

1. Online: Applications can be found online here
2. Over the phone: Questions and application assistance can be reached at 877-508-8364.
3. In person: All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only; however, you’ll need to call ahead of time to schedule an appointment.

Lastly, applicants will need to reference their sales, inventory, and other records in order to apply. Since this program is a self-certified program, we recommend retaining the records and documentation used to complete the application in case spot checks are performed by the county committee.

We’ll be updating our COVID-19 Resource Center diligently to keep you apprised of new relief funding opportunities and guidance as they are released. If you have questions about your eligibility for CFACP or the application process, reach out to your Aldrich Advisor.

This article was written with the most current information as of November 20, 2020.