USDA Making $2.3 Bil. More Available for CFAP Payouts

Posted on 01/15/2021 9:18 AM

Dates for modified CFAP applications: Jan. 19-Feb. 26



President Donald Trump and his team at USDA are not done sending out checks relative to Covid relief payments to the ag sector. They are using up to $2.3 billion in unspent USDA funding from the first and second rounds of CFAP to provide relief payments to contract producers while providing supplemental payments to hog farms, among other changes. Link to USDA release; here is another link.


USDA also is adjusting payments calculations for producers who have already received Coronavirus Food Assistance Program (CFAP) payments and is making turf grass and pullets eligible for program payouts.


The top-up payments to pork producers totaling $150 million will be made automatically at a rate of $17 per head. The payments are intended to cover 50% of pork producers’ pandemic-related losses. Producers who received the initial payments don’t need to apply for the additional funding.


Contract poultry and livestock producers can apply for payments — designed to cover 80% of their pandemic-related revenue losses — starting Jan. 19 and ending Feb. 26.


Producers of turf grass and pullets were not previously eligible for the second round of CFAP payments. Those payments are expected to total about $100 million and will be based on eligible sales.


More money


More aid details


For producers who already qualified for CFAP as sales-based commodities, USDA is offering to adjust the payment calculation to take into account 2019 crop insurance indemnities, Noninsured Disaster Assistance Program (NAP) payments, and disaster aid under the Wildfire and Hurricane Indemnity Program Plus (WHIP+). Sales commodities include fruit, vegetable and nut crops, aquaculture, tobacco, specialty livestock, nursery crops and floriculture.


Producers of those commodities who want USDA to recalculate their payment eligibility can modify their existing CFAP-2 applications starting Tuesday. Those adjustments are expected to provide about $30 million in payments.


The Farm Service Agency also will adjust the payment calculation for some producers of barley, corn, sorghum, soybeans, sunflowers, upland cotton and wheat who were covered by crop insurance but didn’t have an approved yield, or Action Production History (APH), established for 2020.


FSA has decided to use 100% of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield to calculate payments when an APH is not available. FSA previously calculated payments based on 85% of the ARC-CO benchmark yield.



Add new comment