USDA Coronavirus Food Assistance Program Data Story — OAI Report 22-033-01, Office of Inspector General, December 2022

Summary

A transmittal memorandum from the USDA Office of Inspector General, product number 22-033-01, dated December 1, 2022, from Craig M. Goscha, Deputy Assistant Inspector General for Analytics and Innovation, to Zach Ducheneaux, Administrator of the Farm Service Agency, on the USDA Coronavirus Food Assistance Program Data Story. It states that the data story is the second in a series of data products and covers how CFAP 1 and CFAP 2 evolved from inception to the end of February 2022, using unaudited data. The attached Farm Service Agency response states that the program announced April 17, 2020 totaled over $19 billion and that CFAP 2 had a minority participation rate of 4.2 percent before being reopened. It asks that the data story reflect the additional context in the response.

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OFFICE OF INSPECTOR GENERAL
U. S. DEPARTMENT OF AGRICULTURE
USDA Coronavirus Food Assistance Program Data Story
OAI Report 22-033-01
December 2022

OFFICE OF INSPECTOR GENERAL
United States Department of Agriculture
DATE:
December 1, 2022
PRODUCT
NUMBER:
22-033-01
TO:
Zach Ducheneaux
Administrator
Farm Service Agency
ATTN:
Gary Weishaar
Branch Chief
External Audits and Investigations Division
FROM:
Craig M. Goscha
Deputy Assistant Inspector General for Analytics and Innovation
SUBJECT:
USDA Coronavirus Food Assistance Program Data Story
The U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) has launched a
series of data products called data stories. The purpose of these data stories is to enhance
transparency of significant USDA programs using data analytics and visualizations while
integrating data storytelling methods.
This data story is the second in the series and focuses on the USDA Coronavirus Food
Assistance Program (CFAP). This product utilized data analytics, visualizations, and data
storytelling methods to enhance transparency of how the CFAP 1 and CFAP 2 programs evolved
over time. The data utilized for this data story were unaudited.
CFAP 1 and CFAP 2 provided payments to agricultural producers to help address the economic
hardships created when COVID-19 disrupted the agricultural supply chain. This CFAP data story
invites the reader to explore both programs and how they evolved from inception to the end of
February 2022 in response to changing pandemic conditions.
Farm Service Agency’s written response to the data story is included in its entirety in the data
story and this report. OIG applied the established Office of Analytics and Innovation quality
assurance standards to ensure the information presented in this product is adequately supported.
We appreciate the courtesies and cooperation extended to us by members of your staff during the
development of this data story. The product will be posted in its entirety to our website
(usdaoig.oversight.gov) in the near future.
Attachment

Topic:
Response to the Office of Inspector General Data Story
on the Coronavirus Food Assistance Program

To:

Craig Goscha, Craig.Goscha@oig.usda.gov
Deputy Assistant Inspector General, Analytics and Innovation, Office of
Inspector General

From:
Zach Ducheneaux, Zach.Ducheneaux@usda.gov
Administrator, Farm Service Agency, U.S. Department of Agriculture

The U.S. Department of Agriculture’s (USDA’s) Farm Service Agency (FSA) commends the
Office of Inspector General’s launch of its new product, Data Stories, and its efforts to use this
product to enhance the transparency of significant USDA programs using data analytics and
visualization while integrating data storytelling methods.  Below are our comments:

FSA agrees with OIG’s explanation of the sizable disruptions to food supply chains caused by
the onset of the COVID-19 pandemic and the impacts of those disruptions on American
farmers, ranchers, and producers. Through funds provided by Congress in response to this
unprecedented crisis, USDA under the previous Administration distributed tens of billions of
dollars in supplemental assistance to agricultural producers. Part of this assistance was
distributed through the Coronavirus Food Assistance Program (CFAP).

The previous Administration announced the CFAP on April 17, 2020. This program, which
totaled over $19 billion, initially provided support to farmers and ranchers impacted by the
COVID-19 pandemic. The vast majority of this funding—$16 billion—was administered as
direct payments to producers who suffered price declines and faced additional significant
marketing costs as a result of lower demand, surplus production, and disruptions to shipping
patterns and the orderly marketing of commodities.

OIG appropriately notes that, following the initial payments under the original CFAP (“CFAP
1”), in September 2020, the previous Administration announced details of another multi-billion
“CFAP 2.”   Unlike CFAP 1, payments under CFAP 2 were divided into multiple categories,
including price trigger commodities, flat-rate commodities, and sales commodities. In December
2021, Congress also approved additional funding for relief to agricultural producers, including a
third round of CFAP payments.

As all forms of CFAP assistance were paid out to producers, Congressional leaders and
agricultural stakeholders raised concern that the relief was not reaching a broad enough set of
producers, and many of the most vulnerable agricultural communities were not receiving the
assistance they needed to weather the pandemic.

While the OIG Data Story elevates the fact that more than 200 commodities were ultimately
included under both CFAP 1 and CFAP 2—and that both programs were amended over time to
include “wider varieties of producers and commodities”—it is important to understand that

both iterations of the program had very low participation among minority producers. When
CFAP 1 was initially implemented, the program had a minority participation rate of 4.4 percent
(3.5 percent of payments), and prior to being reopened, CFAP 2 had a minority participation
rate of 4.2 percent (3 percent of payments). That is why, one of the first actions of Biden-Harris
Administration leadership was to temporarily pause CFAP payments; the Administration
paused payments so that USDA could conduct a detailed analysis of the payments that had
been issued and the gaps in assistance that remained. The Administration deemed it essential to
ensure that future CFAP payments were targeted towards producers and industries that had not
yet benefitted from the program.

During its review and analysis of previous CFAP payments, USDA found that, under CFAP 2
in particular, sign-up appeared rushed and lacked normal procedures focused on ensuring
effective outreach, from translated forms to partnerships focused on reaching underserved and
nontraditional customers.  USDA also found that, while the sales commodity category of
payments under CFAP 2 provided a new opportunity to reach specialty crop and diversified
producers who normally do not participate in USDA’s price support programs, data continued
to reflect a lack of nontraditional producers’ participation through this category.

After completing its analysis of the program, in March 2021, USDA shared that it would re-
open signup for CFAP 2 for at least 60 days beginning on April 5, 2021. USDA’s FSA
committed at least $2 million to improve outreach for CFAP 2 and established partnerships
with organizations with strong connections to historically underserved communities to ensure
they were informed and aware of the application process. The formula payments to finish out
CFAP went out under the then-existing CFAP rules due to statutory requirements. However,
future opportunities for USDA pandemic assistance were reviewed for verified need, and
during the rulemaking process, USDA was committed to making eligibility more consistent
with the Farm Bill.

It is important to note that the re-opening of CFAP sign-up under the Biden-Harris
Administration was for all eligible producers and was based on the clear discovery of
inadequate outreach under previous iterations of the program. As a result of USDA’s efforts,
USDA saw a fourfold increase in CFAP 2 participation by underserved producers during the
reopening period.

Moreover, in addition to reopening CFAP and intentionally working to expand its reach
in underserved communities, USDA concurrently established several new programs and
efforts to bring financial assistance to farmers, ranchers, and producers who felt the
impacts of COVID-19 market disruptions but had not received assistance through CFAP.
USDA dedicated $6 billion to a new Pandemic Assistance for Producers initiative,
putting a greater emphasis on outreach to small and underserved producers, including but
not limited to specialty crop and organic producers, timber harvesters, and others
impacted by COVID.

The Department remains focused on reaching a better understanding of where barriers to
accessing USDA programs and services exist, so that they can be better addressed both in
program design as authorities allow and in USDA’s outreach efforts.  FSA respectfully

requests the OIG CFAP data story reflect the additional context and information this
management response provides.

Learn more about USDA OIG
Visit our website:  https://usdaoig.oversight.gov/
Follow us on Twitter:  @OIGUSDA

How to Report Suspected Wrongdoing in USDA Programs

Fraud, Waste, and Abuse
File complaint online:  https://usdaoig.oversight.gov/hotline
Monday–Friday, 9:00 a.m.– 3:00 p.m. ET
In Washington, DC 202-690-1622
Outside DC 800-424-9121
TDD (Call Collect) 202-690-1202
Bribes or Gratuities
202-720-7257 (24 hours)
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA)
civil rights regulations and policies, the USDA, its Agencies, offices, and employees,
and institutions participating in or administering USDA programs are prohibited from
discriminating based on race, color, national origin, religion, sex, gender identity (in­
cluding gender expression), sexual orientation, disability, age, marital status, family/
parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for prior civil rights ac­
tivity, in any program or activity conducted or funded by USDA (not all bases apply to
all programs). Remedies and complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of communication for pro­
gram information (e.g., Braille, large print, audiotape, American Sign
Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at
(202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service
at (800) 877-8339. Additionally, program information may be made available in
languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination
Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint
and at any USDA office or write a letter addressed to USDA and provide in the letter all of
the information requested in the form. To request a copy of the complaint form, call (866)
632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of
Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue,
SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@
usda.gov.
USDA is an equal opportunity provider, employer, and lender.
All photographs on the front and back covers are from USDA’s Flickr site and are in the
public domain. They do not depict any particular audit, inspection, or investigation.

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