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Coronavirus Food Assistance Program 2

Summary

A Farm Service Agency fact sheet from the U.S. Department of Agriculture on the Coronavirus Food Assistance Program 2 (CFAP 2). It says the original application period has ended and that USDA reopened signup beginning April 5, 2021, for at least 60 days. Eligibility turns on an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018, or at least 75 percent of adjusted gross income from farming, ranching or forestry-related activities. The sheet gives payment rates for price trigger crops, livestock, dairy and sales commodities, and a payment limitation of $250,000 per person and legal entity, with entities able to receive up to $750,000.

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“Coronavirus Food Assistance Program 2.” Original at www.farmers.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-04-usda-fsa-coronavirus-food-assistance-program-2-fact-sheet-www-600bd0f513/, SHA-256 f71f01689100192c8657f7f089fa34b93b2c1331b760c17d8be102a05ad33fb6.

Full text

              United States
              Department of
              Agriculture
                                                                                      FARM SERVICE AGENCY



CORONAVIRUS FOOD ASSISTANCE PROGRAM 2




USDA is providing critical support to our                  To be eligible for payments, a person or legal entity
nation’s farmers and ranchers through the                  must either:
Coronavirus Food Assistance Program 2 (CFAP                •   have an average adjusted gross income of less than
2). CFAP 2 provides vital financial assistance                 $900,000 for tax years 2016, 2017, and 2018; or
to agricultural producers who continue to                  •   derive at least 75 percent of their adjusted gross
face market disruptions and associated costs                   income from farming, ranching or forestry-related
because of COVID-19.                                           activities.
                                                           Persons and legal entities also must:
Overview
                                                           •   commercially produce the eligible commodities;
USDA will begin providing additional financial
assistance to farmers, ranchers and producers              •   be in the business of farming at the time of
impacted by COVID-19 market disruptions through the            application;
Pandemic Assistance for Producers initiative.              •   comply with the provisions of the “Highly Erodible
                                                               Land and Wetland Conservation” regulations, often
The original application period for CFAP 2 ended Dec.
                                                               called the conservation compliance provisions;
11, 2020. USDA reopened CFAP 2 signup beginning
April 5, 2021, for at least 60 days. A signup deadline     •   if a foreign person, provides land, capital, and a
will be announced at a later date.                             substantial amount of active personal labor to the
                                                               farming operation; and
Who is Eligible?                                           •   not have a controlled substance violation.
Producers (persons or legal entities) of specified         Commodities grown under a contract in which the
agricultural commodities who face continuing market        grower has ownership and production risk are eligible
disruptions and significant marketing costs are eligible   for CFAP 2.
for CFAP 2 payments.
                                                           Eligible Commodities
                                                           CFAP 2 payments will be split into three categories of
                                                           commodities:
                                                           1. Price trigger commodities;
                                                           2. Flat-rate crops; and
                                                           3. Sales commodities.
FACTSHEET • APRIL 2021                                                                           farmers.gov/cfap
CORONAVIRUS FOOD ASSISTANCE PROGRAM 2						2

Price Trigger Commodities
Price trigger commodities suffered a 5-percent-or-
greater price decline in a comparison of the average
price for the week of January 13-17, 2020, and the
average price for the week of July 27-31, 2020.
Price trigger commodities include:
•   Barley
•   Corn
•   Sorghum
•   Soybeans
•   Sunflowers
•   Upland Cotton
•   Wheat (all classes)
•   Broilers
•   Eggs                                                          Contract Producer Commodities
•   Beef Cattle                                                   Eligible commodities specifically for contract producers
•   Dairy                                                         include:
•   Hogs and Pigs
                                                                  • Broilers                      • Turkeys
•   Lambs and Sheep
                                                                  • Pullets                       • Chicken Eggs
Flat-rate Crops                                                   • Layers                        • Hogs & Pigs
Flat-rate crops are crops that either do not meet the
5-percent price decline trigger or do not have data               Ineligible Commodities
available to calculate a price change. Flat-rate crops
include, but are not limited to:                                  Hay, except alfalfa, and crops intended for grazing
                                                                  are ineligible for CFAP 2 and will not receive a CFAP 2
•   Alfalfa                          •   Khorasan Wheat           payment. Crops with intended uses of green manure
•   Amaranth Grain                   •   Mustard                  and those left standing are also ineligible.
•   Buckwheat                        •   Oats
•   Canola                                                        Ineligible commodities for CFAP 2 include, but are not
                                     •   Peanuts
•   Extra Long Staple Cotton                                      limited to:
                                     •   Quinoa
•   Crambe (Colewart)                •   Rapeseed                 •   Birdsfoot and Trefoil      •   Lespedeza
•   Einkorn                          •   Safflower                •   Clover                     •   Milkweed
•   Emmer                            •   Sesame                   •   Cover Crop                 •   Mixed Forage
•   Flax                             •   Speltz                   •   Fallow                     •   Pelt (excluding mink)
•   Guar                             •   Sugarcane                •   Forage Sorghum             •   Perennial Peanuts
•   Hemp                             •   Sugar Beets              •   Forage Soybeans            •   Pollinators
•   Indigo                           •   Sweet rice               •   Gardens (commercial        •   Sunn Hemp
•   Industrial Rice                  •   Teff                         and home)                  •   Seed of ineligible
•   Kenaf                            •   Triticale                •   Grass                          crops
•   Millet                           •   Wild rice                •   Kochia (prostrata)         •   Vetch

                                                                  Payments
Sales Commodities                                                 CCC funds will be used to partially compensate
Sales commodities include:                                        producers for on-going market disruptions and assist
•   Fruits and Vegetables                                         with the transition to a more orderly marketing system.
•   Aquaculture grown in a controlled environment;                CCC Charter Act funds cannot be used to provide
•   Nursery crops and floriculture;                               assistance for tobacco; however, tobacco will be eligible
•   Other livestock (excluding breeding stock) not included       for CFAP 2 using remaining funds authorized by the
    under the price trigger category that were grown for
                                                                  CARES Act. Tobacco payments will be on hold for any
    food, fiber, fur, or feathers;
•   Tobacco;
                                                                  modified or new CFAP 2 applications for a short period
•   Goat milk;                                                    of time.
•   Mink (including pelts);
                                                                  Price Trigger Crops
•   Mohair;
•   Pullets;                                                      For barley, corn, sorghum, soybeans, sunflowers,
•   Turfgrass sod;                                                upland cotton, and wheat (all classes), payments will
•   Wool; and                                                     be based on the eligible 2020 acres of the crop, as
•   Other commodities.                                            reported to FSA on form FSA-578, excluding prevented
For a list of all eligible commodities, visit farmers.gov/cfap.   planting and experimental acres.

FACTSHEET • APRIL 12, 2021                                                                                farmers.gov/cfap
CORONAVIRUS FOOD ASSISTANCE PROGRAM 2						3


Payments for price trigger crops will be the greater of:    Dairy
1. the eligible acres multiplied by a payment rate of       Dairy (cow’s milk) payments will be equal to the sum of
   $15 per acre; or                                         the following:
2. the eligible acres multiplied by a nationwide crop       •      The producer’s total actual milk production from
   marketing percentage, multiplied by a crop-specific             April 1, 2020, to August 31, 2020, multiplied by the
   payment rate, and then by the producer’s weighted               payment rate of $1.20 per hundredweight; and
   2020 Actual Production History (APH) approved
   yield. If the APH is not available, 100 percent of the   •      The producer’s estimated milk production
   2019 Agriculture Risk Coverage-County Option (ARC-              from September 1, 2020, to December 31,
   CO) benchmark yield for that crop will be used.                 2020, multiplied by a payment rate of $1.20 per
                                                                   hundredweight. FSA will estimate this production
     PAYMENT RATES FOR PRICE TRIGGER CROPS                         based on the producer’s daily average production
                                                                   from April 1 to August 31, 2020, multiplied by the
  COMMODITY        UNIT OF        CROP        PAYMENT              number of days the dairy operation commercially
                   MEASURE     MARKETING         RATE              markets milk from September 1, 2020, through
                               PERCENTAGE      ($/UNIT)
                                   (%)                             December 31, 2020.

 Barley             bushels         63            $0.54     Dairy operations applying for CFAP 2 must be in the
                                                            business of producing and commercially marketing
 Corn               bushels         40            $0.58     milk at the time of application. Dairy operations that
                                                            dissolve or have dissolved on or after September
                                                            1, 2020, are eligible for a prorated payment for the
 Cotton, Upland     pounds          46            $0.08
                                                            number of days the dairy operation commercially
                                                            markets milk from September 1, 2020, through
 Sorghum            bushels         55            $0.56     December 31, 2020.

 Soybeans           bushels         54            $0.58     Price-Trigger Livestock
                                                            For price-triggered livestock, payments are based on a
 Sunflowers         pounds          44            $0.02     fixed number of head, which is defined as the lower of:
 Wheat
                                                            • the highest maximum owned inventory of eligible
                    bushels         73            $0.54         livestock, excluding breeding stock, on a date
 (All Classes)
                                                                selected by the eligible producer from April 16,
                                                                2020, through August 31, 2020; or
Broilers and Eggs                                           • the maximum number of livestock per type
For broilers, payments will be equal to 75 percent of           established by USDA.
the producer’s 2019 broiler production multiplied by
the payment rate of $1.01 per bird (head).                       PAYMENT RATES FOR PRICE-TRIGGER LIVESTOCK

Payments for eggs will be equal to 75 percent of the             COMMODITY          UNIT OF         PAYMENT RATE
                                                                                    MEASURE            ($/UNIT)
producer’s 2019 egg production multiplied by the CCC
payment rate.
                                                                Beef Cattle           head                $55
     PAYMENT RATES FOR PRICE TRIGGER CROPS
                                                                Hogs and Pigs         head                $23
   COMMODITY         UNIT OF         PAYMENT RATE
                     MEASURE            ($/UNIT)
                                                                Lambs and
                                                                                      head                $27
                                                                Sheep
 Shell Eggs            dozen               0.05

 Liquid Eggs          pounds               0.04

 Dried Eggs           pounds               0.14

 Frozen Eggs          pounds               0.05



FACTSHEET • APRIL 12, 2021                                                                             farmers.gov/cfap
CORONAVIRUS FOOD ASSISTANCE PROGRAM 2						4


CFAP 1 Additional Payment for Cattle Producers                      PAYMENT RATES FOR SALES COMMODITIES
The Consolidated Appropriations Act 2021 provides
                                                                    2019 SALES RANGE          PERCENT PAYMENT
additional CFAP assistance for cattle producers. This                                              FACTOR
payment is equal to the number of cattle in inventory
between April 16, 2020 to May 14, 2020. Cattle producers      Up to $49,999                           10.6
with approved CFAP 1 applications will automatically
receive these payments.
                                                              $50,000-$99,999                         9.9
The following payment rates will be used:
   ELIGIBLE COMMODITY               PAYMENT RATE              $100,000-$499,999                       9.7


 Feeder Cattle: Less than 600                                 $500,000-$999,999                       9.0
                                        $7/head
 Pounds
 Feeder Cattle: 600 Pounds                                    All sales over $1 million               8.8
                                      $25.50/head
 or more

 Slaughter Cattle: Fed Cattle         $63.00/head            Example: A producer’s 2019 sales of eligible
                                                             commodities totaled $75,000. The payment is
 Slaughter Cattle: Mature
                                      $14.75/head
                                                             calculated as ($49,999 times 10.6%) plus ($25,001 times
 Cattle                                                      9.9%) equals a total payment of $7,775.
 All Other Cattle                     $17.25/head            Payment Calculation for Contract Producers:

                                                                     Eligible revenue received from January 1, 2019
Flat-Rate Crops                                                      through December 27, 2019
For flat-rate crops, payments will be calculated by             ─   Eligible revenue received from January 1, 2020
multiplying the producer’s share of reported or determined          through December 27, 2020
2020 planted acres of the crop, excluding prevented          _________________________________________________________
planted and experimental acres, by $15 per acre.                     Difference of Eligible revenue X 80%


Sales Commodities                                            Additional Payment for Row-Crop Producers
                                                             The Consolidated Appropriations Act 2021 provides
For sales commodities, payments will be calculated
                                                             additional CFAP assistance for producers of price-
using a sales-based approach based on five payment
                                                             trigger and flat rate crops. This payment is equal to the
gradations associated with the producer’s 2019 sales
                                                             eligible acres of the crop multiplied by a payment rate
of the commodity along with crop insurance
                                                             of $20 per eligible acre. FSA will automatically issue
indemnities, Noninsured Crop Disaster Assistance
                                                             payments to eligible producers based on the eligible
Program and Wildfire and Hurricane Indemnity
                                                             acres included on their CFAP 2 applications. Eligible
Program Plus payments for crop year 2019.
                                                             producers who have already applied for CFAP 2 do
                                                             not need to submit a new application to receive this
                                                             payment.

                                                             New Producers in 2020
                                                             Payments cannot be calculated using the methods
                                                             described above for producers of broilers, eggs, and
                                                             sales commodities who began farming in 2020 and had
                                                             no 2019 production or sales.

                                                             Payments for such producers will be based on the
                                                             producer’s actual 2020 production or sales as of the
                                                             date the producer submits an application for payment.




FACTSHEET • APRIL 12, 2021                                                                           farmers.gov/cfap
CORONAVIRUS FOOD ASSISTANCE PROGRAM 2						5


Payment Limitation
CFAP 2 payments are subject to a per person and legal
entity payment limitation of $250,000. This limitation
applies to the total amount of CFAP 2 payments for all
eligible commodities.

Unlike other FSA programs, special payment limitation
rules apply to participants that are corporations,
limited liability companies, limited partnerships
(corporate entities), trusts, and estates. These legal
entities may receive up to $750,000 based upon the
number of members (not to exceed three members)
who each contribute at least 400 hours of active
personal labor or active personal management.

For a legal entity:                                            Where to File the Application
•   With one such member, the payment limit for the            FSA staff at your local USDA Service Center will work
    entity is $250,000;                                        with producers to file applications. Applications may be
•   With two such members, the payment limit for               submitted via mail, fax, hand delivery, or via electronic
    the entity is $500,000 if at least two members             means. Please call your office prior to sending
    contribute at least 400 hours of active personal           applications electronically.
    labor or active personal management, or
    combination thereof, with respect to the operation         The CFAP 2 application and associated forms are
    of the corporate entity; and                               available online at farmers.gov/cfap.
•   With three such members, the limit is $750,000
    if at least three members contribute at least 400          Who to Call for Help
    hours of active personal labor or active personal          Additionally, producers interested in one-on-one
    management, or combination thereof, with respect           support with the CFAP 2 application can contact our call
    to the operation of the corporate entity.                  center at 877-508-8364 to speak directly with a USDA
CFAP 2 payment limitation is separate from the CFAP 1          employee ready to offer assistance.
payment limitation.
                                                               More Information
As a result of additional assistance being issued for          This fact sheet is for informational purposes only; other
row-crop and cattle producers, a CFAP applicant that           restrictions may apply. For more information about
is a corporation, limited liability corporation, limited       the CFAP program, visit farmers.gov/cfap or contact
partnership, trust, or estate will have the option of          your local FSA office. To find your local FSA office, visit
seeking an increase in the $250,000 payment limitation         farmers.gov/service-locator.
for those members of an entity that contribute at least
400 hours of active personal labor management, not to
exceed a maximum of three members. An authorized
representative of a legal entity should contact their
local FSA staff to revise a previously filed CFAP 1
or 2 application.




FACTSHEET • APRIL 12, 2021
USDA is an equal opportunity provider, employer, and lender.


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