USDA Announces CFAP Program Updates: Who Benefits?

Summary of Changes Made to CFAP Food Assistance Programs for Producers

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On January 15, the USDA announced rule changes that would provide additional assistance for many farmers and ranchers due to COVID-19 disruptions.

The new rules make changes to the Coronavirus Food Assistance Program 1 (CFAP1) and Coronavirus Food Assistance Program 2 (CFAP2). Some of these changes were made following requirements set by the new guidance under the Consolidated Appropriations Act, 2021 (second stimulus program), and others were discretionary changes made by USDA to provide further assistance online (with the original intent of CFAP1 and CFAP2).

It should be noted that these are the first set of changes released by the USDA, and additional information for producers under the new stimulus program is expected to be released soon.

Major changes under this update include:

  • Hog and swine producers – $17/head additional payment for hog and pig producers who previously applied for CFAP1 for inventory owned between April 16, 2020 and May 14, 2020. No action is needed by producers as they will be issued the additional funds.
  • Contract growers of swine and poultry that sustained a loss in revenue from January 1, 2020- December 26, 2020 (as compared to the same time period in 2019). The FSA will pay on 80% of the losses. Eligible contract growers must have not had a share of the revenue of the sales. CFAP2 applications can be submitted for eligible producers until February 26, 2021.
  • Pullets and turfgrass sod are being added to the “sales-based commodities” category under CFAP2. Producers can submit applications until February 26, 2021.
  • Producers can add crop insurance indemnities, payments from NAP, and payments from WHIP+ from the 2019 year to eligible sales for “sales-based commodities” in the CFAP2 program. Producers must have filled a timely application. Amending the application can be completed before February 26, 2021.
  • For “price-trigger commodities” in CFAP2, producers who did not have an approved APH yield can use 100 percent of the ARC-CO benchmark yield  if the producer:
    • Has a crop insurance plan that does not include an APH
    • Is a landlord with a share in the crop, and the tenant insures 100%
    • Is a tenant with a share, and the landlord insures 100%
    • Is a joint venture, and one of the members insures the crop

As stated above, this will not be the end of funds to producers affected by COVID-19. We expect further information to be released soon regarding additional stimulus payments to producers (as provided in the guidance under the second stimulus package signed in December 2020).

If you think you qualify for one (or more) of the changes issued above and have questions, you can visit www.Farmers.gov to find your local service center, or contact a KCoe Isom Farm Program Services advisor.

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