Are you a farmer or rancher whose operation has been directly impacted by the coronavirus pandemic?  The Coronavirus Food Assistance Program will provide direct relief to producers who have suffered losses during the 2020 marketing year due to COVID-19. 

The Coronavirus Food Assistance Program (CFAP) is $16 billion in direct support to agricultural producers impacted by the coronavirus pandemic.  The USDA will provide direct payments to growers and grower-shippers of fresh produce for demonstrated losses caused by the COVID-19 pandemic.


USDA Grower Payments for COVID-19 Losses/Harm

As announced earlier this week, USDA changed their approach to the payments (designed to cover some of the losses due to COVID-19) by agreeing to not be guided by the Farm Bill caps ($125,000 per crop and $250,000 per farm with multiple crops).  The details on eligibility requirements, payment limits, how the direct payment program will work, and the application process have not been released yet.  It is anticipated that USDA will release the full breath of rules in the Federal Register within the next two weeks. 


Who is Eligible?

Direct support for farmers and ranchers regardless of farm size will be available via CFAP, and will include:

  • Direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted.
  • Assistance to producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19. 
  • USDA evaluated commodity specific losses occurring during the January to April time frame for immediate assistance.  
  • In addition, near-term adjustment costs and supply disruptions over the next few months were also evaluated to the extent possible for sectors where prices have declined significantly for additional assistance. 

CFAP is available to farmers regardless of size and market outlet - if they suffered an eligible loss.  We know that the disruption to markets and demand is significant, and these payments will only cover a portion of the impacts on farmers and ranchers. 


What is a Loss to be Considered?

The CFAP program would provide direct support based on losses for agricultural producers where prices and market supply chains have been impacted.

  • It also assists producers with additional adjustments and marketing costs resulting from lost demand and short-term oversupply caused by COVID-19.
  • USDA evaluated commodity-specific losses occurring during the January 2020 to April 2020 timeframe for immediate assistance.
  • In addition to the extent possible, we evaluated near-term adjustment costs and supply disruptions over the next few months for sectors where prices have declined significantly for additional assistance.
  • The program is available to producers regardless of size and market outlet - - if they suffer(ed) an eligible loss.

We know that the disruption to markets and demand is significant, and these payments will only cover a portion of the impacts on farmers and ranchers.


What you can do now

Our advice to you is this.  We believe that with no limits the program will be over-prescribed just like the first Payroll Protection Program was.  So, timing of your submission and advanced preparation are two very important keys.  Best to be first than to wait and be shut out.  There are no guarantees that additional funding will come in the future.   If your business incurred losses due to COVID-19, then you should plan to apply for reimbursement. 

 The CFAP program will be administered by the Farm Service Agency, who know agriculture well.  If you have done business with the USDA’s FSA before, then you may have most of this ready in the system.  But, it may be best to check it over to make sure.

 In preparation you can start gathering and understanding your farm’s recent sales and inventory.  NOTE:  FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

For those of you that may have not dealt with FSA, it is highly recommended that you begin to gather information about your business’s sales, out-of-pocket losses, secondary opportunity sales losses and inventory.  You can start by completing the general USDA forms (below).   The forms ask for details that will be needed by FSA like your contact information, Tax Identification Number, operation structure, adjusted gross income and direct deposit banking information.

  •  CCC-901 – Identifies that the farm is a legal entity.
  • CCC-902 – Your farm operating plan
  • CCC-941 –  Average adjusted gross income form
  • CCC-942 – If applicable, income from farming, ranching and forestry for those exceeding the adjusted gross income limitation
  • AD-1026 – Ensures conservation compliance provisions are met
  • AD-2047 – Provides basic customer contact information.
  • SF-3881 – Collects banking information to allow USDA to make direct deposit payments

IMPORTANT:  Do NOT send any personal information before you make contact with the local Farm Service Agency office.

FSA has streamlined the application process to not require an acreage report at the time of application and a USDA Farm Number may not be immediately needed.


Application Process

When the CFAP direct payment program launches, USDA will take applications via appointment only at your local Farm Service Agency (FSA) county office.  Their staff will work with agricultural producers by phone and use email, fax, mail, and online tools like Box to accept applications.  Your local FSA office will help you with your application. 

 For a list of state and county offices and contacts, and for more details on the CFAP program, visit the USDA’s website (www.farmers.gov/cfap).

Stay tuned to the release of the rules, limitations, requirements and more.  The release of that information will serve like a dinner bell.  Don’t be caught without a chair at the table.  There are a lot of hungry people coming to supper.  Good Luck!