The deadline to apply for Coronavirus Food Assistance Program (CFAP) aid is Aug. 28. CFAP is “one of the most timely implemented disaster programs that FSA has administered. Once producers qualify, the payments are immediate,” according to Jamie White, acting state executive director for South Dakota Farm Service.
White provided the following answers to questions that were presented during a recent CFAP seminar hosted by South Dakota Farmers Union.
1. What is CFAP? CFAP funds will provide up to $16 billion in direct payments to provide relief to America’s farmers and ranchers impacted by the coronavirus pandemic. There is a payment limitation of $250,000 per person, or up to $750,000 for limited liability corporations, limited partnerships and corporations for all commodities combined.
2. Who qualifies? Producers with ownership risk of identified commodities [crops, livestock, milk] that suffered a 5% or greater national price loss as a result of the COVID-19 pandemic or had substantial marketing costs of inventories and produce.
3. How do crop payments work? Producers will be paid based on inventory unpriced or subject to price risk held on Jan. 15. A single payment based on 50% of a producer’s 2019 total production or the 2019 inventory as of Jan. 15, whichever is smaller, multiplied by 50% and then multiplied by the commodity’s applicable payment rates.
4. What does “unpriced” and “subject to price” risk mean? Unpriced or subject to price risk means that commodity’s price is not yet secured through a forward contract, agreement or similar binding transaction as of Jan. 15.
5. How do you qualify for crop payments. Producers must provide the following information for CFAP:
- Total 2019 production for the commodity that suffered a 5% or greater price decline
- Total 2019 production that was not sold as of Jan. 15
Special payment limitation rules apply to participants that are corporations, limited liability companies and limited partnerships (corporate entities). Producers need to demonstrate they are engaged in the operation, working a minimum of 400 hours.
6) What about livestock? A single payment will be calculated using the sum of the producer’s number of livestock sold between Jan. 15 and April 15 multiplied by the payment rate per head, and the highest inventory number of livestock between April 16 and May 14 multiplied by the payment rate per head.
Producers must provide the following information for CFAP:
- Total sales of eligible livestock, by species and class between Jan. 15 and April 15 of owned inventory as of Jan. 15, including any offspring from that inventory
- Highest inventory of eligible livestock, by species and class, between April 16 and May 14
7) How do I apply? For an application, helpful calculator and more details visit farmers.gov/cfap or contact your local FSA office.