IARN — U.S. Agriculture Secretary Sonny Perdue today released additional information regarding the Coronavirus Food Assistance Program (CFAP), which seeks to assist farmers and ranchers impacted by the coronavirus pandemic.
Bill Northey, Under Secretary for Food Production and Conservation, says the Farm Service Agency (FSA) will start to accept applications next Tuesday, May 26.
“Through the Coronavirus Food Assistance Program, (the) USDA will provide 16-billion-dollars in direct payments to agricultural producers whose commodities suffered a five-percent, or greater national price decline,” Under Secretary Northey said.
U.S. Department of Agriculture staff built this program specifically for producers. Eligible producers may receive up to $250,000 for a combination of commodities. Payments will be prorated. Producers can expect to receive 80-percent upon approval.
Under Secretary Northey provides guidance for non-specialty crop producers, raising malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and/or hard red spring wheat.
“Producers will be paid based on the inventory they held, which was subject to price risk on January 15. They will self-certify that inventory, and will be subject to spot checks on that certification. A payment will be made up to 50-percent of the producer’s 2019 production or inventory on January 15, whichever is smallest. The payment rate would be multiplied by the amount of inventory,” Under Secretary Northey said.
Livestock producers eligible for assistance raise: Cattle, lambs, yearlings, and/or hogs. Their payments will be calculated based on two sets of data, according to Under Secretary Northey.
“A single payment will be calculated based on the number of animals sold between January 15 and April 15. That number will be multiplied by a payment rate. We’re looking at the lost value during that time, on average,” Northey said. “Then the second payment, included in this initial payment that’s made, is based on the inventory a producer has on hand during at a date of their choosing between April 16 and May 14. We have a payment rate for that as well.”
Additional information on eligibility and payment rates can be found at www.farmers.gov/cfap.
Story courtesy of the Iowa Agribusiness Radio Network.