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On September 21, USDA expanded the Coronavirus Food Assistance Program (CFAP) and implemented Coronavirus Food Assistance Program 2, CFAP 2, for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.

TIMING

CFAP 2 follows the first round of CFAP, which had an application period of May 26 through September 11. Sign-up for CFAP2 opened on September 21 and concludes on December 11, 2020.

"PRICE TRIGGER CROPS"

To qualify: a 5% price decline from April 15 - December 31

Crops: Greater of 2020 planted acres X $15/acre or eligible acres X nationwide crop marketing percentage X crop-specific payment rate X the producer’s weighted 2020 APH. (Those without APH will use 85% of the benchmark yield used for the ARC-County program.)

Price trigger poultry and livestock will be paid in varying ways:

• Beef cattle ($55/head), hogs and pigs ($23/head), and lambs and sheep ($27/head) payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer between April 16 and Aug. 31.
• Broilers : 75% of the farm’s 2019 production X $1.01/head.
• Egg rates: 75% 2019 production times: shell (5¢/dozen), liquid (4¢/lb.), dried (14¢/lb.) and frozen (5¢/lb.).Must have price risk.
• Dairy payments based on actual milk production from April 1 to Aug. 31 X $1.20/cwt. plus estimated production for Sept. 1-Dec. 31, 2020 (calculated as average production from April 1-Aug. 31 X 122) X $1.20/cwt. 

“FLAT RATE” CROPS:

Hemp, alfalfa, extra-long-staple cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, and rapeseed.

SALES COMMODITIES:

Specialty crops; aquaculture; nursery crops and floriculture; specialty livestock 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

Payments for these are based on the producer’s eligible sales in calendar year 2019 X a payment rate for various revenue ranges.

More specific info on specific categories of crops and livestock here: https://www.farmers.gov/cfap

WHAT'S NEEDED

To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records.

Since CFAP 2 is a self-certification program, this documentation will not need to be submitted with the application but spot checks will be conducted. Added info on documents available on the application site.

ELIGIBILITY / LIMITATIONS

The total CFAP 2 payment that a person or legal entity may receive, directly or indirectly through attribution of payments, is $250,000. As this is a separate program, this payment limitation is separate from the CFAP 1 payment limit. This limitation applies to the total amount of CFAP 2 payments made with respect to all eligible commodities.

Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits when members actively provide personal labor or management for the farming operation. This special provision has been expanded to include trusts and estates for both CFAP 1 and 2.

The $900,000 Adjusted Gross Income limitation also applies unless at least 75% of their income is derived from farming, ranching or forestry-related activities.

Conservation compliance also required.

FSA HELP DESK

FSA offers phone support for producers who have questions about FSA programs including CFAP.  Customers can call 877-508-8364 for help.