The USDA’s Coronavirus Food Assistance Program (CFAP) will provide $19 billion in direct relief for agricultural producers, using funding from the Coronavirus Aid, Relief, and Economic Security Act, the Families First Coronavirus Response Act, and other USDA authorities.
Local Farm Service Agency offices will begin accepting CFAP applications on May 26. Details about completing the application are available on the USDA website.
Eligible producers of specified agricultural commodities who have suffered a five percent-or-greater price decline as a result of the COVID-19 pandemic (from mid-January to mid-April), and who face substantial marketing costs for inventories, are eligible for CFAP payments. The marketing costs are associated with lower prices given significant declines in demand, surplus production, or disruptions to shipping patterns and the orderly marketing of commodities.
To be eligible for payments, a person or legal entity must have an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018. However, if 75 percent of their adjusted gross income comes from farming, ranching, or forestry, the AGI limit of $900,000 does not apply.
CFAP is not a loan program, and there is no cost to apply. The application deadline is August 28, 2020. Visit the USDA website for details about eligible commodities, payment calculations, how to apply, payment limits, resources and more. Also, refer to the CFAP Frequently Asked Questions.
Please contact Yeo & Yeo’s Agribusiness Services Group if you need assistance with answering questions on the application.
The information contained in this post may not reflect the most current developments, as the subject matter is extremely fluid and constantly changing. Please continue to monitor Yeo & Yeo’s COVID-19 Resource Center for ongoing developments. Readers are also cautioned against taking any action based on information contained herein without first seeking professional advice.