(SEPTEMBER 18, 2020) – On Friday, President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue announced up to an additional $14 billion dollars for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin September 21st and run through December 11, 2020.
CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities.
Eligible beef cattle, hogs and pigs, and lambs and sheep 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.
Sales commodities include other livestock (excluding breeding stock) not included under the price trigger category that were “grown for food, fiber, fur, or feathers.” Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.
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.
USCA will meet with senior White House officials this afternoon for a briefing on the program. We will report back with additional information as soon as we have it. In the meantime, please send your questions directly to us and we will do our best to find an answer.