United States Department of Agriculture, Farm Service Agency, Coronavirus Food Assistance Program

Summary

Fact sheet dated August 12, 2020 from the U.S. Department of Agriculture’s Farm Service Agency on the Coronavirus Food Assistance Program (CFAP), which gives financial assistance to producers of agricultural commodities that suffered a five percent-or-greater price decline from the COVID-19 pandemic. It states that FSA accepts applications from May 26, 2020, to September 11, 2020, and that eligible persons or legal entities must have average adjusted gross income under $900,000 for tax years 2016, 2017 and 2018 or derive at least 75 percent of it from farming, ranching or forestry. CFAP payments are limited to $250,000 per person or legal entity, while corporate entities may receive up to $750,000 depending on shareholders contributing at least 400 hours of active personal labor or management. Applications are filed through local USDA Service Centers.

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              United States
              Department of
              Agriculture
                                                                                        FARM SERVICE AGENCY




CORONAVIRUS FOOD ASSISTANCE PROGRAM




USDA is providing critical support to our nation’s           USDA may reconsider excluded commodities if credible
farmers and ranchers through the Coronavirus                 evidence is provided. More information about request
Food Assistance Program (CFAP). CFAP provides                for consideration of additional commodities can be
                                                             found at farmers.gov/cfap.
vital financial assistance to producers of
agricultural commodities with financial assistance           Producers may have some commodities that are
that gives them the ability to absorb sales losses           currently eligible for CFAP while others are not.
and increased marketing costs associated with the            Producers are encouraged to apply for CFAP now for
                                                             their eligible commodities. If a commodity is added to
COVID-19 pandemic.
                                                             the program, producers will have an opportunity to
                                                             amend their application.
Overview                                                     To be eligible for payments, a person or legal entity
The Coronavirus Aid, Relief, and Economic Stability Act      must either:
(CARES Act) and the Commodity Credit Corporation             • have an average adjusted gross income of less than
(CCC) Charter Act authorized the funds for the CFAP.             $900,000 for tax years 2016, 2017, and 2018; or
USDA’s Farm Service Agency (FSA) and Agricultural            •   derive at least 75 percent of their adjusted gross
Marketing Service (AMS) administer the program.                  income from farming, ranching, or forestry.
FSA is accepting applications for CFAP from                  Persons and legal entities also must:
May 26, 2020, to September 11, 2020.                         • comply with the provisions of the “Highly Erodible
                                                                Land and Wetland Conservation” regulations, often
                                                                called the conservation compliance provisions;
Who is Eligible?                                             •   if a foreign person, provides land, capital, and a
Eligible producers (person or legal entity) of specified         substantial amount of active personal labor to the
agricultural commodities who have suffered a five                farming operation; and
percent-or-greater price decline as a result of the          •   not have a controlled substance violation.
COVID-19 pandemic, and who face substantial
marketing costs for inventories are eligible for CFAP
payments. These specified commodities include                Payment Limitation
certain specialty crops, non-specialty crops, wool, dairy,   CFAP payments are subject to a per person and legal
aquaculture, nursery crops and cut flowers, eggs, and        entity payment limitation of $250,000. This limitation
livestock.                                                   applies to the total amount of CFAP payments for all
For a list of eligible commodities and payment criteria,     eligible commodities.
visit farmers.gov/cfap.

                                                                                         FACT SHEET - AUGUST 12, 2020
CORONAVIRUS FOOD ASSISTANCE PROGRAM						2


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

For a corporate entity:
• With one such shareholder, the payment limit for
    the entity is $250,000;
• With two such shareholders, the payment limit
    for the entity is $500,000 if at least two members
    contribute at least 400 hours of active personal
    labor or active personal management, or
    combination thereof, with respect to the operation
    of the corporate entity; and                                 More Information
• With three such shareholders, the limit is $750,000
    if at least three members contribute at least 400            This fact sheet is for informational purposes only; other
    hours of active personal labor or active personal            restrictions may apply. For more information about the
    management, or combination thereof, with respect             CFAP program, visit farmers.gov/cfap or contact your
    to the operation of the corporate entity.                    local FSA office.

                                                                 To find your local FSA office, visit farmers.gov/cfap.
Where to File the Application
FSA staff at your local USDA Service Center will work
with producers to file applications. Applications may be
submitted via mail, fax, hand delivery, or via electronic
means. Please call your office prior to sending
applications electronically.
The CFAP application and associated forms are
available online at farmers.gov/cfap.




                                 USDA is an equal opportunity provider, employer and lender.


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