USDA expands CFAP eligibility, updates payment calculations

The U.S. Department of Agriculture recently announced additional assistance through the Coronavirus Food Assistance Program. The new assistance includes expanded eligibility for certain commodities and producers established in the recently passed relief package, as well as updated payments for producers who were eligible under previous iterations of the program.

Producers may submit new applications or modify existing applications through the USDA Farm Service Agency between Jan. 19 and Feb. 26, 2021.

Expanded CFAP 2 eligibility

Contract producers of swine, broilers, laying hens, chicken eggs and turkeys who suffered a drop in revenue in 2020 as compared to their 2019 revenue because of the pandemic now are eligible for assistance. Producers could receive up to 80% of their revenue loss, subject to the availability of funds. Producers of pullets and turfgrass sod also are now available for CFAP payments.

Updated CFAP 2 payment calculations

Along with the expanded assistance, FSA also adjusted the CFAP 2 payment calculation for sales commodities to use the producer’s eligible 2019 calendar year sales, and 2019 crop insurance indemnities, Noninsured Crop Disaster Assistance Program, and Wildfire and Hurricane Indemnity Program–Plus payments, multiplied by the applicable payment rate for all sales commodities. CFAP 2 sales commodities include specialty crops, aquaculture, tobacco, specialty livestock, nursery crops and floriculture. Producers who applied during the sign-up period that closed Dec. 11, 2020, can modify an existing CFAP 2 application between Jan. 19 and Feb. 26, 2021.

FSA also adjusted the CFAP 2 payment calculation for certain row crops, addressing an issue that existed for producers who had crop insurance coverage but did not have a 2020 Actual Production History-approved yield. Now, when APH is not available, FSA will use 100% of the 2019 Agriculture Risk Coverage-County benchmark yield to calculate payments instead of the 85% that earlier CFAP 2 calculations required. The change only includes producers with crop insurance coverage who grow barley, corn, sorghum, soybeans, sunflowers, upland cotton and wheat. Producers who applied during the sign-up period that closed Dec. 11, 2020, may modify an existing CFAP 2 application between Jan. 19 and Feb. 26, 2021.

CFAP 1 ‘Top-up’ payments for swine

FSA is providing an additional CFAP 1 inventory payment for swine to help producers who face continuing market disruptions from changes in U.S. meat consumption due to the pandemic. Swine producers with approved CFAP 1 applications will soon automatically receive a “top-up” payment of $17 per head increasing the total CFAP 1 inventory payment to $34 per head.

How to apply

Newly eligible producers who need to submit a CFAP 2 application or producers who need to modify an existing one can do so between Jan. 19 and Feb. 26, 2021, by contacting their local USDA Service Center. New applicants can also obtain one-on-one support with applications by calling (877) 508-8364. Additional information can be found on USDA’s CFAP website.