CFAP 2

The Trump administration on Friday announced another round of federal assistance payments for farmers and ranchers who continue to face market disruptions and costs due to COVID-19, Coronavirus Food Assistance Program 2 (CFAP 2). The payments, up to $14 billion, are in addition to the first round of CFAP payments and will go to producers of crops, livestock, dairy, and other commodities. Signup for the CFAP 2 begins Sept. 21 and runs through Dec. 11. Additional information and application forms can be found at www.farmers.gov/cfap.

CFAP 2 payments will be made for three categories of commodities: price trigger commodities; flat-rate crops; and sales commodities. The first two categories will be of most interest to Nebraska producers. Price trigger commodities are ones which had at least a 5 percent price decline between the weeks of January 13 and July 27 of this year. Corn, sorghum, soybeans, sunflowers, and wheat are eligible for payments under this category. Payments will equal the greater of 1) eligible acres multiplied by $15/acre, or 2) eligible acres multiplied by a crop-specific marketing percentage, multiplied by a crop-specific payment rate, multiplied by the producer’s weighted APH yield for 2020.

Cattle, hogs, and dairy are also eligible for payments as price trigger commodities. Dairy payments are based on actual milk production between April 1 to August 31 plus estimated production for the remainder of the year. Payments for cattle, hogs, and sheep are based on the maximum inventory of eligible livestock owned between April 16 and August 31, the date and inventory to be selected by producers. Eligible inventory does not include breeding livestock. Different payment rates apply to each species.

Flat-rate crops are those that either do not meet the 5 percent price decline trigger or do not have price data available to calculate a price change. Eligible crops include alfalfa, hemp, millet, oats, rye, and sugar beets. Payments for these crops will equal eligible acres multiplied by $15/acre.

More information on payment rates, eligible acres and inventory, and payment limits for CFAP 2 can be found at https://www.nefb.org/images/FEDeration/COVID-19/CFAP-Guide-2.pdf. Again, CFAP 2 financial assistance is in addition to the payments received under CFAP 1. As of Sept. 14, total payments to Nebraska producers under CFAP 1 equaled $701 million, with almost 34,000 approved applications. Of this total, cattle producers have received $384 million (55 percent), corn producers $230 million (33 percent), and soybean producers $40 million (6 percent). Nebraska Farm Bureau estimates in June suggested losses to Nebraska producers from COVID-19 this year could exceed $2 billion.