USDA makes long-awaited adjustments to CFAP 2 for livestock and poultry contract growers
USDA announced today that it is updating the Coronavirus Food Assistance Program 2 (CFAP 2) for contract producers of eligible livestock and poultry and producers of specialty crops and other sales-based commodities. CFAP 2 aids producers who faced market disruptions in 2020 due to Covid-19. USDA’s Farm Service Agency set an Oct. 12 deadline for eligible producers to apply or modify applications for CFAP 2.
The Consolidated Appropriations Act of 2021 provides up to $1 billion for payments to contract producers of eligible livestock and poultry for revenue losses from Jan. 1, 2020 through Dec. 27, 2020, USDA details. It goes on to say, “Contract producers of broilers, pullets, layers, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail may be eligible for assistance. This update includes eligible breeding stock and eggs of all eligible poultry types produced under contract.”
Under today’s change, contract producers can now elect to use eligible revenue from the period of Jan. 1, 2018 through Dec. 27, 2018, rather than the same dates in 2019, if that is more representative. “The difference in revenue is then multiplied by 80% to determine a final payment. Payments to contract producers may be factored if total calculated payments exceed the available funding and will be made after the application period closes,” USDA details.
USDA has also added other flexibilities to account for increases to operation size in 2020 and for situations where a contract producer did not have a full period of revenue from Jan. 1 to Dec. 27 for either 2018 or 2019. Aid is also available for new contract producers who started farming in 2020.
USDA also amended its CFAP 2 payment calculation for sales-based commodities (mainly specialty crops) to allow producers to substitute 2018 sales for 2019 sales. Grass seed has also been added as an eligible sales commodity for CFAP 2.
Signup for CFAP 2 reopened in March and will remain open through Oct. 12. Find more details here.
