Livestock and Poultry By Contract Growers Now Eligible for CFAP2

USDA has announced additional assistance for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP2) – Additional Assistance began January 19 and will run through February 26, 2021.

The additional assistance will be used to update payments to accurately compensate producers who already applied for earlier assistance and to expand CFAP eligibility to producers and commodities. Details are located at https://www.farmers.gov/cfap. Producers can modify applications or apply for CFAP2 at USDA’s Farm Service Agency (FSA) county offices.  For details on how to modify or submit a new CFAP2 applications, visit www.farmers.gov/cfap/apply.

Updated Payment Calculations

CFAP additional assistance includes changes to more accurately compensate producers who already applied for the program. Producers of certain commodities may be eligible for higher payments.

Aquaculture, Nursery Crops and Floriculture, Specialty Crops, Specialty Livestock and Tobacco Indemnities received from crop insurance, the Noninsured Crop Disaster Assistance Program (NAP) and/or Wildfire and Hurricane Indemnity Program Plus (WHIP+) can now be added to producers’ eligible sales in calendar year 2019 and multiplied by a sales range payment factor (8.8% – 10.6%) to update CFAP2 payments for these commodities. Producers who applied during the CFAP 2 sign-up period that closed December 11, 2020, and received insurance indemnities, NAP payments, or WHIP+ payments for the 2019 crop year, should contact their local USDA Service Center to modify their CFAP 2 applications by February 26, 2021.

Row Crops. FSA updated the CFAP2 payment calculation for certain row crops, specifically for producers who had crop insurance but did not have an available 2020 Actual Production History (APH) approved yield. FSA is now using 100 percent of the 2019 Agriculture Risk Coverage-County Option benchmark yield, rather than the original 85%. This calculation change applies to producers with crop insurance coverage who grow barley, corn, sorghum, soybeans, sunflowers, upland cotton and wheat. Affected producers who applied during the sign-up period that closed December 11, 2020, should contact their local USDA Service Center to modify their CFAP 2 applications by February 26, 2021.

Swine producers with approved CFAP 1 applications are now receiving a “top-up” payment. Payment rates for swine are increasing from 25 percent to 50 percent of the estimated total economic loss. Eligible swine producers with approved CFAP 1 applications will soon automatically a receive “top-up” payment of $17 per head to cover up to an additional 25 percent. Payments will be based on hog and pig inventory owned between April 16, 2020, to May 14, 2020. No action is required for producers to receive top-up payments. Producers who did not have an approved CFAP 1 application are not eligible

Expanded Eligibility

Certain contract growers are now eligible to apply for CFAP 2, along with producers of pullets and turfgrass sod. Details are outlined by commodity.

Livestock and Poultry by Contract Growers are now eligible for assistance through CFAP. Eligible producers must:

  • have raised broilers, pullets, layers, chicken eggs, turkeys, hogs, or pigs under a contract in 2019 and 2020.
  • demonstrate a drop in revenue for the period from January 1, 2020, through December 27, 2020, as compared to the period from January 1, 2019, through December 27, 2019.
  • provide a copy of their contract and documentation to support the information provided on their application, if requested by FSA.

Payments are based on eligible revenue for January 1, 2020, through December 27, 2020, minus eligible revenue for January 1, 2019, through December 27, 2019, multiplied by up to 80 percent.

Eligible contract growers can now apply for CFAP 2 between January 19 through February 26, 2021 by contacting their local FSA county office. Access all CFAP 2 application resources at www.farmers.gov/cfap2/apply

Pullets are now eligible for assistance through CFAP. Pullet producer payments will be equal to:

  1. The amount of the producer’s eligible sales in calendar year 2019, multiplied by
  2. The payment rate (8.8% – 10.6%) for the corresponding sales range.

Payments for producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date. Pullet producers can now apply for CFAP 2 between January 19 through February 26, 2021 by contacting their local FSA county office. Access all CFAP 2 application resources at www.farmers.gov/cfap2/apply

Turfgrass sod producers are now eligible for assistance through CFAP. Payments for turfgrass sod will be equal to:

  1. The amount of the producer’s eligible sales in calendar year 2019, multiplied by
  2. The payment rate (8.8% – 10.6%) for the corresponding sales range.

Payments for producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date. Turfgrass sod producers can now apply for CFAP 2 between January 19 through February 26, 2021 by contacting their local FSA county office. Access all CFAP 2 application resources at www.farmers.gov/cfap2/apply

General

Payment Limitations

There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75% or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

Applying for Assistance

Producers can apply for assistance beginning January 19, 2021. Applications will be accepted through February 26, 2021.

Additional information and application forms can be found at farmers.gov/cfap. Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.

Customers seeking one-on-one support with the CFAP2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.

All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with FSA, Natural Resources Conservation Service or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors are also required to wear a face covering during their appointment. Our program delivery staff will be in the office, and they will be working with our producers in the office, by phone and using online tools. More information can be found at farmers.gov/coronavirus.

Consolidated Appropriations Act of 2021

The Consolidated Appropriations Act of 2021 included additional mandatory assistance provisions for crops, cattle and dairy margin. Program regulations for these provisions should be finalized in the coming weeks.

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