CFAP Direct Payment Information

The deadline to apply for a CFAP Direct Payment is September, 2020.  Growers are strongly encouraged to submit their application as soon as possible either online at www.farmers.gov/cfap or in-person at a local Farm Service Agency service center.

CFAP is a self-certification program.  While documentation is not needed at the time you submit your application, you should have your documentation ready in the event you are audited.  Information about CFAP can be found below and online at www.farmers.gov/cfap.

Payment Details

Details about eligible specialty crop varieties, documentation requirements, and payment amounts can also be found on the USDA CFAP website here.

Category 1 Payment – For lemons and tangerines that were sold between January 15, 2020, and April 15, 2020, payment will be made for the quantity sold multiplied by the payment rate. There will be a place on the application form to indicate the number of pounds sold.  FSA’s system will automatically calculate the payment amount.  Growers should retain documentation from their packinghouse as evidence of their sale for audit purposes.

Category 2 Payment – For all citrus varieties (grapefruit, lemons, oranges and tangerines) that were harvested and sent to the packing house between January 15, 2020 and April 15, 2020, subsequently spoiled due to loss of marketing channel, payment will be made for the amount of product left on-farm multiplied by the payment amount for that variety. Growers should retain documentation from their packinghouse as evidence that the fruit was harvested but not sold due to being spoiled.

Category 3 Payment –  For all citrus varieties (grapefruit, lemons, oranges and tangerines) that did not leave the farm or mature crops that remained unharvested between January 15, 2020 and April 15, 2020 due to loss of marketing channel, payment will be made for the amount of product left on-farm multiplied by the payment amount for that variety.

The application will ask how many acres OR pounds were not harvested/left on-farm.  If you report the number of acres, USDA will use the average yield per acre to calculate the payment amount. For example, one acre of lemons is estimated to produce 36,000 lbs. If you state on your application that 2 acres of lemons were not harvested, FSA will calculate that to be 72,000 pounds.

Alternatively, a grower may choose to estimate the total amount of pounds that went unharvested.  In this example, growers should compare last year’s harvested volume during the time period versus this year’s harvested volume to come up with the calculation of what was not harvested.  Packinghouses should also provide those growers that had certified acres not harvested with a letter of those acres not harvested for the grower to report.

Producer Eligibility Requirements

• Payment Limitations: Payments are subject to a per person/legal entity payment limitation of $250,000. Corporate entities may receive up to $750,000 based upon the number of shareholders, up to three, who provide substantial labor or management to the operation.
• Adjusted Gross Income Eligibility: There is no AGI limit for a person or legal entity who derives 75% or more of their average AGI from farming activities. Persons or entities who derive less than 75% of their AGI from farming activities, are ineligible if their AGI for 206, 2017, and 2018 tax years is more than $900,000.