Is CFAP For You?
May 29, 2020
Jim Ward – Director of Risk Management.
The USDA recently released the Coronavirus Food Assistance Program (CFAP). It features $16 billion in direct financial support for agriculture producers significantly impacted by COVID-19.
Payments will be made on qualifying crops at the following rates:
CFAP Payments for Non-Specialty Crops
Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A single payment will be made based on 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by 50 percent and then multiplied by the commodity’s applicable payment rates.
Producers must provide the following information for CFAP:
· Total 2019 production for the commodity that suffered a five percent-or-greater price decline, and
· Total 2019 production that was not sold as of January 15, 2020.
The following table lists eligible non-specialty commodities and payment rates for CFAP.
| Commodity | Unit of Measure | CARES Act Payment Rate (Applied against 50% of unpriced inventory as of January 15, 2020, not to exceed 50 percent of 2019 total production) |
CCC Payment Rate (Applied against 50% of unpriced inventory as of January 15, 2020, not to exceed 50 percent of 2019 total production) |
| Barley (malting barley only) | bushel | $0.34 | $0.37 |
| Canola | pound | $0.01 | $0.01 |
| Corn | bushel | $0.32 | $0.35 |
| Upland Cotton | pound | $0.09 | $0.10 |
| Millet | bushel | $0.31 | $0.34 |
| Oats | bushel | $0.15 | $0.17 |
| Sorghum | bushel | $0.30 | $0.32 |
| Soybeans | bushel | $0.45 | $0.50 |
| Sunflowers | pound | $0.02 | $0.02 |
| Wheat, Durum | bushel | $0.19 | $0.20 |
| Wheat, Hard Red Spring | bushel | $0.18 | $0.20 |
And on the following livestock:
CFAP Payments for Livestock
A single payment for livestock will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.
Producers must provide the following information for CFAP:
· Total sales of eligible livestock, by species and class, between January 15, 2020, to April 15, 2020, of owned inventory as of January 15, 2020, including any offspring from that inventory; and
· highest inventory of eligible livestock, by species and class, between April 16, 2020, and May 14, 2020.
The following table lists eligible livestock and payment rates for CFAP.
| Livestock | Eligible Livestock | Unit of Measure | CARES Act Part 1 Payment Rate |
CCC Part 2 Payment Rate |
| Cattle | Feeder Cattle: Less than 600 Pounds | Head | $102.00 | $33.00 |
| Feeder Cattle: 600 Pounds or More | Head | $139.00 | $33.00 | |
| Slaughter Cattle Fed Cattle | Head | $214.00 | $33.00 | |
| Slaughter Cattle: Mature Cattle | Head | $92.00 | $33.00 | |
| All Other Cattle | Head | $102.00 | $33.00 | |
| Hogs and Pigs | Pigs: Less than 120 Pounds | Head | $28.00 | $17.00 |
| Hogs: 120 Pounds or More | Head | $18.00 | $17.00 | |
| Lambs and Yearlings | All Sheep Less than 2 Years Old | Head | $33.00 | $7.00 |
To get in on this limited opportunity, when it runs out its over (for now), you need to get into your local FSA office and sign up as soon as possible.