The U.S. Department of Agriculture (USDA) yesterday announced additional details about the Coronavirus Food Assistance Program (CFAP), providing $16 billion in emergency direct payments to agricultural producers impacted by the COVID-19 pandemic. Cattle, hog, dairy, specialty crop and row crop producers are eligible for payments, according to USDA.
Enrollment will begin May 26. According to USDA, CFAP payments will be prorated, providing 80% of the payment in the initial distribution and the remaining 20% at a later date, as funds allow.
USDA stated today a payment limitation of $250,000 per person or entity for all commodities combined will apply to CFAP, with some additional considerations for corporations, limited liability companies or limited partnerships.
Below is a summary of the livestock-related portion of the program. Additional details can be found at https://www.farmers.gov/cfap/livestock
Livestock eligible for CFAP include cattle, hogs, and sheep. CFAP assistance is available to livestock producers who have an ownership interest in eligible livestock that have suffered a five percent-or-greater price decline as a result of the COVID-19 pandemic and face additional significant costs in marketing their inventories due to unexpected surplus and disrupted markets.
A single payment for livestock will be calculated by adding:
- The producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head (part 1), plus
- The highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head (part 2).
CFAP payments are subject to a per person and legal entity payment limitation of $250,000.
A person or legal entity, other than a joint venture or general partnership, is ineligible for payments if the person’s or legal entity’s average adjusted gross income (AGI) is more than $900,000, unless at least 75 percent of that AGI is derived from farming, ranching, or forestry-related activities.
How to Apply:
FSA will begin taking applications on Tuesday, May 26. At this point in time, USDA Service Centers are open for business by phone appointment only. FSA will be working with producers by phone and using email, fax, mail, and online tools like Box to accept applications.
Additionally, the following forms will be needed for CFAP. Existing FSA customers likely already have these on file at their local Service Center.
- CCC-901 (Also Available in Spanish) – Identifies members of a farm or ranch that is a legal entity. Member Information will be completed by legal entities and joint operations to collect the following:
- member names, addresses, and Tax Identification Numbers
- citizenship status
- CCC-941 (Also Available in Spanish) – Reports your average adjusted gross income for programs where income restrictions apply.
- CCC-942 – If applicable, this certification reports income from farming, ranching, and forestry, for those exceeding the adjusted gross income limitation.
- AD-1026 (Also Available in Spanish) – Ensures compliance with highly erodible land conservation and wetland conservation.
- AD-2047 – Provides basic customer contact information.
- SF-3881 – Collects your banking information to allow USDA to make payments to you via direct deposit.
You can find your local USDA service center here: https://offices.sc.egov.usda.gov/locator/app