USDA makes additions to CFAP1 and CFAP2

The USDA has announced additions and revisions to both rounds of the Coronavirus Food Assistance Program, providing added financial assistance for farmers.   

Farm Service Agency Administrator Richard Fordyce tells ag reporters this expands CFAP2 eligibility to pullet and turfgrass sod producers as well as contract producers of swine and some poultry. He says it also updates payment calculations for CFAP2 and adds “Top-up” payments for swine bumping the swine inventory payment rate of 25% up to 50% of estimated economic loss.   

“We knew the losses were greater than we were able to pay for in CFAP1 so this is an opportunity to top those up a little bit.”

He says the adjustments will automatically be made for swine top up payments, but other producers impacted by the changes will need to apply or amend their applications between January 19th and February 26th.  

“For example, if a producer had applied and we utilized the 85% of the Agriculture Risk Coverage County (ARC-CO) benchmark rate and they truly did have an insurance product, then we are going to move that to 100%, but that requires an application amendment.”

Undersecretary Bill Northey says these additions are being funded by leftover CARES Act and Commodity Credit Corporation dollars that were designated for CFAP1 and CFAP2, but not used.  

Northey says is unclear whether the next administration will use funds in the recent omnibus spending bill for additional revisions or roll out a third CFAP program.

Fordyce and Northey explain changes to ag reporters

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