Farmers can access an additional $14 billion in direct payments starting Monday through a second round of the Coronavirus Food Assistance Program.
Sign-up for CFAP 2 will run Sept. 21 to Dec. 11 and will be conducted through local Farm Service Agency offices, USDA announced this morning.
After the first set of CFAP payments covered losses early in the year, this round of payments will compensate for ongoing market disruptions and elevated marketing costs related to the pandemic.
CFAP 2 payments will be made in three categories: price-trigger commodities, flat-rate crops and sales commodities.
Price-trigger commodities have seen at least a 5% price drop over a set period of time. They include barley, corn, sorghum, soybeans, sunflowers, upland cotton and wheat.
Payments will be based on 2020 planted acres of the crop, excluding prevented planting and experimental acres.
Payments for price trigger crops will be the greater of the eligible acres multiplied by a payment rate of $15 per acre, or the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 actual production history, or APH, approved yield.
If the APH is not available, 85% of the 2019 Agriculture Risk Coverage-County Option benchmark yield for that crop will be used.
Broiler and egg payments will be based on 75% of the producers’ 2019 production.
Dairy payments will be based on actual cow’s milk production from April 1 to Aug. 31. The milk production for Sept. 1 to Dec. 31 will be estimated by the Farm Service Agency.
Beef cattle, pig and sheep 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.
Flat-rate crops either do not meet the 5% price decline trigger or do not have data available to calculate a price change.
These crops will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale and rapeseed.
Sales commodities include specialty crops, fish, nursery crops and floriculture, tobacco, goat milk, mink, wool and mohair.
Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.
This round of funding includes commodities that weren’t covered in the first round. The full list is at farmers.gov/cfap
The funding comes from the CARES Act and the Commodity Credit Corp.