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The 411 on the USDA Coronavirus Food Assistance Program 2

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Start and End Dates

The program will open on September 21, 2020, and will continue through December 11, 2020.

Eligibility

Any individual or entity who is sharing in the production risk of producing a commodity may apply. You must have an average AGI (for 2016-2018) of less than $900,000 to be eligible; however, if 75% of your AGI income comes from farming, the AGI limit is not applicable.

Program Limitations

Payment limitations for CFAP 2 are $250,000 per person or legal entity for all commodities. Because CFAP 2 is a separate program it has it’s own payment limitation that is separate the original CFAP as well as other Farm Bill programs. Legal entities (LLC, Corporation, Limited Partnership, etc.) are eligible for 1 payment limit ($250.000), however, they can receive up to $500,000 if there are at least 2 members or $750,000 if there are at least 3 members, and each member provides at least 400 hours of active personal labor and/or management.

Trigger Commodities - Row Crops

Trigger row crops include barley, corn, cotton, sorghum, soybeans, sunflowers, and wheat. The payment for these crops will be calculated by multiplying the 2020 Planted Crop Acres by the Crop Marketing % by the Payment Rate by the Weighted 2020 APH approved yield. If you do not have a 2020 APH, you will use 85% of the weighted ARC-CO benchmark yield for that crop. See the table below for the rates for these commodities:

Commodity

Crop Marketing %

Payment Rate

Barley

63%

0.54

Corn

40%

0.58

Cotton, Upland

46%

0.08

Sorghum

55%

0.56

Soybeans

54%

0.58

Sunflowers

44%

0.02

Wheat

73%

0.54

 

Flat Rate Crops 

Flat Rate Crops include alfalfa, amaranth grain, buckwheat, canola, Extra Long Staple (ELS) cotton, crambe (colewort), einkorn, emmer, flax, guar, hemp, honey, indigo, industrial rice, kenaf, khorasan, millet, mustard, oats, peanuts, quinoa, rapeseed, rice, sweet rice, wild rice, rye, safflower, sesame, speltz, sugar beets, sugarcane, teff, and triticale. Payments for these crops will be calculated by multiplying the producer’s share of the 2020 Planted Crop Acres by a payment rate of $15 per acre.

Livestock (Trigger Commodity)

Eligible livestock includes beef cattle, hogs, pigs, lambs, sheep, and cow milk. Equine, animals raised for breeding stock, pets and animals raised for hunting/gaming are not eligible. Payments will be made based on the highest inventory of livestock owned on a date selected by the producer between April 16, 2020, and August 31, 2020. The payment rates for the livestock are listed below.

Livestock

Payment Rate

Beef Cattle

$55 / head

Hogs & Pigs

$23 / head

Sheep & Lambs

$27 / head

 

Dairy (cow milk) is treated as a trigger commodity and has a payment equal to the sum of:

- actual milk production from April 1, 2020 – August 31, 2020, multiplied by $1.20/hundredweight; and

- estimated milk production from September 1, 2020 – December 31, 2020 based on the average daily production from April 1 – August 31, 2020 multiplied by 122 multiplied by $1.20/hundredweight.

Sales Commodities (Specialty Crops/Tobacco/Wool)

There are a variety of eligible specialty crops including fruits, vegetables, nuts, tobacco, wool, dairy - goat milk, specialty livestock, flowers, and aquaculture. For a complete list of eligible specialty crops please go to https://www.farmers.gov/cfap/specialty. For a complete list of specialty livestock please go to https://www.farmers.gov/cfap/specialty-livestock.

The payment for these crops is based on 2019 sales. If you had no sales in 2019, the payment is based on actuals sales in 2020 as of the date of the application. The payment will be equal to the total eligible sales in the 2019 calendar year multiplied by the payment rate. The payment rates are listed below.

2019 Sales Range

Payment Rate

$0 - $49,999

10.60%

$50,000 - $99,999

9.90%

$100,000 - $499,999

9.70%

$500,000 - $999,999

9.00%

Over $1 Million

8.80%

 

USDA Example: If you had total specialty crop sales in 2019 equal to $75,000, then the payment would be $7,775 ($49,999 X 10.6% = $5,299.90; + $25,001 x 9.9% = $2,475.10).

Applications

Applications and payment calculators will be available on September 21, 2020. In addition to the application, producers will have to complete or have on file the following forms:

- CCC-902 which is the Farm Operating Plan (if necessary)

- CCC-901 which identifies members of a legal entity that is farming (if an entity)

- CCC-941 which reports your AGI

- CCC-942 for those who exceed the $900,000 in AGI (if necessary)

- AD-1026 which ensures compliance with wetland and highly erodible land conservation

- SF-3881 which collects bank information for payments

- FSA-578 which is the Acreage Report (for those producers applying for price trigger or flat-rate crops)

 

USDA has compiled a list of frequently asked questions. Please refer to https://www.farmers.gov/cfap/faq for common questions and answers.

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Written By

Michelle Goeke

Michelle Goeke

General Counsel & Business Design Specialist

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