USDA Announces CFAP 2 Details
U.S. Secretary of Agriculture Sonny Perdue announced today up to an additional $14 billion for agricultural producers who continue to face market disruptions and associated costs due to the coronavirus pandemic. USDA will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and Coronavirus Aid, Relief and Economic Security Act to support row crops, livestock, specialty crops, dairy and other commodities.
“We are grateful USDA is utilizing its authority provide further relief to cattle producers who have been hit hardest by the COVID-19 pandemic through round two of CFAP payments.” – Ken Herz, President of Nebraska Cattlemen. “CFAP 2 is simplified, giving cattlemen an additional $55 per head on eligible cattle they had in inventory after April 15th.”
CFAP 2 payments will be made for three categories, including price-trigger commodities, flat-rate crops and sales commodities. Price-trigger commodities are major commodities that meet a minimum 5% price decline over a specified period of time, which includes beef cattle.
Eligible Cattle Payments:
The CFAP 2 payment rate for eligible beef cattle is $55 per head. Payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between Apr. 16, 2020, and Aug. 31, 2020. According to USDA, the payments for livestock are focused on market inventory because there are limited funds available for CFAP 2 and the CCC authority that fully funds the program is meant to assist with costs associated with market disruptions.
All females that have not produced offspring and males who have not started breeding females are eligible for including in inventory. Breeding stock such as cows and bulls are not eligible for CFAP 2. Culled cows are also not eligible for CFAP 2 payments.
Eligibility and Payment Limits:
There is a payment limitation of $250,000 per person or entity for all commodities combined.
- Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.
- Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.
USDA has determined that CFAP 1 and CFAP 2 are separate programs. The first CFAP program was designed to address disruptions that had occurred by April 15, 2020. CFAP 2 payments are intended to address the disruptions that have occurred since then. As a result, CFAP 1 payments will not impact how CFAP 2 payments are calculated, and two separate payment limits will be in effect.
Enrollment and Applying for Assistance:
Producers can apply for assistance beginning Sept. 21, 2020. Applications will be accepted through Dec. 11, 2020.
Additional information and application forms can be found at farmers.gov/cfap. Documentation to support the application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.