Farm operators have been wondering about the status of the additional Coronavirus Food Assistance Program payments that were authorized by Congress in December, as well as 2019 WHIP+ payments and other government programs. For the latest details on many of these programs, farmers should contact their local Farm Service Agency office. Following is a brief summary of the latest information from USDA regarding the CFAP payments and other programs.

CFAP 3 (now called pandemic assistance for producers, or PAP) payments to crop producers

Producers of both price trigger crops and flat rate crops that were produced in 2020 will receive an additional $20 per acre CFAP 3 payment. The CFAP 3 payments were originally authorized by the COVID relief bill passed by Congress late in 2020. The price trigger crops include corn, soybeans, wheat, barley, sorghum, sunflowers and upland cotton, with payment eligibility based on the same criteria that was used for the 2020 CFAP 2 payments. The flat rate crops include most crops not covered under the price trigger category, including sugar beets, sweet corn and peas, as well as more than 230 fruit, vegetable and other horticulture crops. Producers will not need to reapply for the CFAP 3 crop payments, as FSA will use the same criteria for these payments that was used for 2020 CFAP 2 payments. It is expected that FSA will issue the CFAP 3 crop payments in early April through direct deposit.

Additional CFAP payments to cattle producers

Cattle producers will receive and additional CFAP payment based on the cattle inventory numbers that were submitted for CFAP 1 eligibility in 2020. This top-up CFAP payment will basically be a doubling of the original 2020 CFAP 1 payments. The payment rates were $63 per head for feedlot cattle ready for slaughter, $25.50 for feeder cattle 600 pounds or more, $7 per head for feeder cattle under 600 pounds, $14.75 per head for mature slaughter cattle, such as non-productive beef and dairy cows, and $17.25 per head for all other cattle. Similar to crops, cattle producers will not need to reapply for the additional CFAP payments, as FSA will use the same cattle inventory numbers used for 2020 CFAP 1 payments. Payments will likely occur in April; however, in some cases, payments to larger producers may be limited, as USDA did not increase the CFAP 1 payment limits.

USDA is still reviewing CFAP Additional Assistance payments

Get more information on all CFAP payments.

USDA did not make any announcements regarding the second half of the 2019 Wildfire and Hurricane Indemnity Program (WHIP+) payments that many farmers in southern Minnesota and other areas of the Upper Midwest are potentially eligible receive, due to significant crop losses in 2019. Most eligible producers that applied have already received their 2018 Whip+ payments and the first half of eligible 2019 WHIP+ payments. The funding for the second half of the 2019 WHIP+ payments was authorized in the COVID relief bill passed by Congress in late 2020, but is still being reviewed by USDA. At this point, there have not been any provisions for WHIP+ applications or payments for crop losses incurred from natural disasters during the 2020 growing season. For more information refer to the USDA WHIP+ website.

PPP loan application update

The U.S. Small Business Administration is expected to announce an extension of the deadline for the Paycheck Protection Program loan applications. Based on legislation that was recently passed by both houses of Congress, the PPP application deadline will be extended from March 31 to May 31, 2020. The PPP application extension applies to both PPP 1 and PPP 2 loan applications for any eligible business, including farm operations that file taxes as a sole proprietorship (using a Schedule F). Following are some details and clarifications regarding farm-related PPP loan applications:

Farmers and other small businesses can apply for PPP loans through most local banks and ag lenders. More details on PPP loan applications are available from lenders or on the SBA website.