New CFAP 2.0 Announced 9/17/20

USDA Announces CFAP 2.0

On September 17^th USDA announced an expansion of the Coronavirus Food Assistance Program (CFAP). CFAP 2.0 will provide producers with financial assistance that will help with some of the increased marketing costs and price loss due to COVID-19. Sign up for the program will start on Monday September 21^st. The program has been expanded and includes row crops, specialty crops, livestock, and dairy. A complete list and applications can be found on the link below. For row crops the payments will be divided into two categories; Price trigger row crops and flat rate row crops. Currently our understanding is that prevented plant acres will not be eligible.

PRICE TRIGGER ROW CROPS

The price trigger row crops can be found below. The payments for price trigger row crops can be calculated by taking the 2020 planted acres times the greater of $15/acre or by the producers APH for the given crop times a crop marketing percentage times a payment rate.   The crop marketing percentages and payment rates for the most common crops can be found in the table below as well as a couple of quick examples.

Payment Example 1: Producer has 100 acres of corn with an approved APH of 150 bushels.

100 Acres x 40% (Crop marketing %) X $0.58 (Payment Rate) X 150 bu. APH = $3,480

Payment Example 2: Producer has 100 acres of soybeans with an approved APH of 40 bushels.

100 Acres x 54% (Crop marketing %) x $0.58 (Payment Rate) x 40 bu. APH = $1500*

*NOTE – the soybean payment came in below $15/acre (40 X 54% x $0.58 = $12.53/Ac)

so the minimum price of $15/acre was triggered

FLAT RATE ROW CROPS

Flat rate row crops include alfalfa, canola, flax, oats, sugar beets, and oats. Payments for eligible row crops included in the flat-rate payment category will be equal to eligible acres of the crop multiplied by a rate of $15 per acre. Eligible acres include the producer’s share of the determined acres, or reported acres if determined acres are not present, excluding prevented planted and experimental acres. Hay, except alfalfa, and crops intended for grazing or green manure are ineligible.

SPECIALTY CROPS

Specialty crops include an extensive list of fruits, vegetables, nuts. The crops that fit into this category that we are primarily concerned with in our area include dry edible bean, dry peas, and potatoes. Sales of dry beans, dry edible peas, or potatoes are categorized as sales commodities. The payment calculations use a sales based approach based on their 2019 sales. For producers with no 2019 sales the payment will be based on the producer’s actual 2020 sales as of the application date. At this time we have more questions than answers on how this will be rolled out on specialty crops and are going to wait for clarification before we go through any payment examples.

More information can be found at:

https://www.farmers.gov/cfap