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USDA Pandemic  Assistance updates: EIDL & PPP

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USDA recently announced the USDA Pandemic Assistance for Producers. There are 3 basic parts to this announcement: 

  1. Changes and additional payments allowed under CFAP1, CFAP, 2 and CFAP Additional Assistance 
  1. Providing $500 Million in additional funding for current programs; and 
  1. Investing $6 Billion New Programs to expand help and assistance to producers 

 

In this blog, we will explore the changes to the CFAP programs in detail and will cover at a high level the types of activities that will be funded through the expansion of current programs and the development of new programs.  


CFAP Updates

  1. CFAP 2 Reopens: The CFAP 2 program will reopen for at least 60 days starting on April 5, 2021, and a deadline will be posted at a later date. 
  2. Additional Cattle Payments: There are additional “Top-Up” Payments available for Cattle under CFAP 1 Program. The payments are based on the highest inventory between April 16, 2020, and May 14, 2020 (this was the CCC Payment portion of CFAP 1) you reported on your CFAP 1 Application (Form AD-3114). To qualify for this payment you do not need to do anything. Payments will be based on your initial application. You can expect payments to start the week of April 5. If you did not apply for CFAP 1 – you are not eligible for this payment – the program is not reopening. Because this is an extension of CFAP, the CFAP limit of $250,000/person or entity applies and any top-up payments received will be added to previous payments when determining those limits. Here are the payments you can expect: 

    Eligible Commodity 

    Payment Rate 

    Feeder Cattle: Less than 600 pounds 

    $7.00/head 

    Feeder Cattle: 600 pounds or More 

    $25.50/head 

    Slaughter Cattle: Fed Cattle 

    $63.00/head 

    Slaughter Cattle: Mature Cattle 

    $14.75/head 

    All other Cattle 

    $17.25/head 

  3. Flat Rate Crops include  alfalfa, amaranth grain, buckwheat, canola, Extra Long Staple (ELS) cotton, crambe (colewort), einkorn, emmer, flax, guar, hemp, 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 
    1. Additional $20/acre for Price Trigger and Flat-Rate Crops. There are additional “Top-Up” Payments available for Price Trigger and Flat-Rate Crops available under CFAP 2. The payment is equal to $20/acre for all 2020 qualifying acres as reported on your CFAP 2 Application (Form AD-3117). To qualify for this payment you do not need to do anything. Payments will be based on your initial CFAP 2 application. You can expect payments to start on April 1, 2021. If you did not apply for CFAP 2 – you can apply starting April 5, 2020.  Because this is an extension of CFAP 2, the CFAP limit of $250,000/person or entity applies and any top-up payments received will be added to previous payments when determining those limits. Here are the Price Trigger and Flat Rate Crops: 
      1. Price Trigger Crops include barley, corn, cotton, sorghum, soybeans, sunflowers, and wheat
      2. Flat Rate Crops include  alfalfa, amaranth grain, buckwheat, canola, Extra Long Staple (ELS) cotton, crambe (colewort), einkorn, emmer, flax, guar, hemp, 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  
  4. CFAP Additional Assistance Program Updates. USDA halted all payments under the CFAP Additional Assistance temporarily. USDA will be finalizing routine decisions and minor formula adjustments on applications and begin processing certain applications filed under these programs:
    1. “Top-up” Swine Payments are still on hold. The USDA expects to make modifications to the program and more details will be announced later. 
    2. Pullets and Turfgrass applications will begin processing after adjustments are made 
    3. Row-Crop Producer Applications: There was a formula correction to allow producers with non-APH insurance policy to use 100% of 2019 ARC-CO benchmark yield 
    4. Sales Commodities: There are Revised applications to include insurance indemnities, Disaster Programs, and WHIP+  

New Funding for Existing Programs 

USDA expects to invest $500 Million in new funding to the following existing programs:  

  1. Specialty Crop Block Grant Program  
  2. Farmers Opportunities Training & Outreach Program  
  3. Local Agricultural Marketing Program  
  4. Gus Schumacher Nutrition Program  
  5. Animal and Plant Health Inspection Service
  6. Agricultural Research  
  7. National Institute of Food and Agriculture  
  8. Economic Adjustment Assistance for Textile Mills an

6 Billion for Expanded Assistance – Development of New Programs 

USDA will dedicate at least $ 6B to develop new programs or modify existing proposals. These programs will include assistance for:  

  1. Dairy Farmers   
  2. Euthanized livestock and poultry 
  3. Biofuels 
  4. Specialty crops, beginning farmers, local, urban, and organic farms 
  5. Costs for organic certification and conservation activities 
  6. Additional expansion to CFAP to support dairy or other livestock 
  7. Timber harvest and hauling 
  8. Personal Protection Equipment (PPE) for food and farm workers, seafood producers, processors, and distributors 
  9. Improving resilience of food supply chain including assistance to meat and poultry operations to facilitate interstate shipment 
  10. Developing infrastructure to support donation and distribution of perishable commodities through farm-to-school, restaurants, and other community organizations 
  11. Reducing food waste 

PPP News 

The PPP Extension Act of 2021 extends the covered period for the Paycheck Protection Program. This effectively means you have until May 31, 2021, to submit applications and the SBA has until June 30, 2021, to process applications. If you think you qualify for PPP and you have not applied, work with your lender to get your applications in before the end of May.  

EIDL News

On March 15, 2021, SBA Announced that they would be extending the payment date for all loans made in 2020 from 12 to 24 months – meaning your first payment is now due 24 months after the date of the note, not 12. For all loans made in 2021, the extension is to 18 months. Note that interest will continue to accrue during this period even though no payments are due.

SBA also announced on March 24, 2021, that they would be increasing the limit of Economic Injury Disaster Loans (EIDL) from 6 months of economic injury with a cap of $150,000 to 24 months of economic injury up to $500,000 starting April 6, 2021. If you have received a loan subject to the current limits, you do not need to submit a request for an increase at this time. SBA will reach out to you directly via email and provide more details about how you can request an increase closer to the April 6 implementation date. If you are applying for a new load, the new limits will be automatically considered. If you have questions about EIDL and the Targeted EIDL, here is a link to the SBA EIDL FAQ: https://www.sba.gov/sites/default/files/2021-02/COVID-19%20EIDL%20FAQs_02.04.21-508.pdf. 

Learn more about how FamilyFarms Group can help you on our website at www.familyfarmsgroup.com or give us a call at 1-877-221-FARM.

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Written By

Michelle Goeke

Michelle Goeke

General Counsel & Business Design Specialist

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