WASHINGTON – President Donald Trump and U.S. Secretary of Agriculture Sonny Perdue on Friday announced up to an additional $14 billion for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.
Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin Sept. 21 and run through Dec. 11.
“America’s agriculture communities are resilient but still face many challenges due to the COVID-19 pandemic. President Trump is once again demonstrating his commitment to ensure America’s farmers and ranchers remain in business to produce the food, fuel and fiber America needs to thrive,” Perdue said. “We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted.”
USDA will use funds being made available from the Commodity Credit Corporation Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers.
Producers can apply for CFAP 2 at USDA’s Farm Service Agency county offices. This program provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. Producers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.
CFAP 2 payments will be made for three categories of commodities – price-trigger Commodities, flat-rate crops and sales commodities.
Price-trigger commodities are major commodities that meet a minimum 5% price decline over a specified period of time. Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat.
Flat-rate 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, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others.
Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price-trigger category that were grown for food, fiber, fur, or feathers. Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.
The business news you need
With a weekly newsletter looking back at local history.