Economic Tidbits

Coronavirus Food Assistance Program (CFAP)

CFAP Crop Payments Rates Based on Funding Score

The USDA rolled out the final details of its $16 billion direct payment package for farmers and ranchers, the Coronavirus Food Assistance Program (CFAP). The program provides financial assistance to producers who have suffered a price decline of greater than 5 percent or who had losses resulting from market supply chain disruptions due to COVID-19.

Nebraska producers of cattle, hogs, corn, millet, oats, soybeans, sorghum, and other eligible commodities will receive payments. Producers could begin to apply for assistance on May 26 with applications being accepted through August 28.

Unlike other COVID-19 financial assistance programs where the money is distributed on a first-come, first-served basis until it is exhausted, all producers who submit approved applications under CFAP will receive at least 80 percent of their eligible payment amounts in the first payment. The remaining 20 percent will be distributed sometime in the future if funding is available. Figure 1 shows the payment rates for eligible commodities based on the funding source (CARES vs. CCC).

Nebraska Farm Bureau last week hosted a webinar with Cathy Anderson of the Nebraska Farm Service Agency (FSA) providing information on the CFAP program. A recording of the webinar, along with a guide on the program, can be found at www.nefb.org/covid-19. Further information and analysis of the program can be found at https://www.fb.org/market-intel. Information can also be found at the USDA program website www.farmers.gov/cfap.

Figure 1. CFAP Crop Payment Rates Based on Funding Score

CFAP Crop Payments Rates Based on Funding Score

Source: Amercian Farm Bureau Federation

What is your reaction?

Approve
0
Not Sure
0
Disapprove
0

You may also like