The USDA Coronavirus Food Assistance Program 2 (CFAP 2) signup window is reopened as of April 5, 2021. Producers have at least 60 days to apply or make modifications to existing CFAP 2 applications to account for crop insurance indemnities and payments.
Agriculture Secretary Tom Vilsack announced on March 24 the U.S. Department of Agriculture will begin providing additional financial assistance to farmers, ranchers, and producers impacted by COVID-19 market disruptions. Resources for these payments were approved by Congress in fiscal years 2020 and 2021.
The original application period for CFAP 2 was September 21 through December 11, 2020. A deadline for signup will be announced at a later date.
Visit farmers.gov/cfap/apply to learn more about modifying your existing CFAP 2 application or submitting a new CFAP 2 application.
CFAP 2 Payments for Specialty Crops
FSA has updated the CFAP 2 payment calculation for specialty crops to account for crop insurance indemnities and payments through the Noninsured Crop Disaster Assistance Program (NAP) and Wildfire and Hurricane Indemnity Program Plus (WHIP+). This more accurately represents what a producer would have marketed if not for a cause of loss.
CFAP payments to specialty crop producers are now calculated using the producer’s eligible sales in calendar year 2019, and crop insurance indemnities, NAP, and WHIP+ payments for crop year 2019, multiplied by the applicable payment rate below.
|2019 Sales Range||Percent Payment Factor for the Producer’s 2019 Sales
of Eligible Commodities Falling in the Range
|$0 to $49,999||10.6%|
|$50,000 to $99,999||9.9%|
|$100,000 to $499,999||9.7%|
|$500,000 to $999,999||9.0%|
|Sales over $1 million||8.8%|
Payments for specialty crop producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date.
Eligible sales only include sales of raw commodities grown by the producer. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, is not included in the payment calculation.
Example: A producer’s 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775.
Specialty crop producers who applied during the CFAP 2 sign-up period that closed December 11, and received insurance indemnities, NAP payments, or WHIP+ payments for the 2019 crop year, should contact their local USDA Service Center to modify their CFAP 2 applications. Insurance indemnities, NAP payments, and WHIP+ payments will be factored in for any specialty crop producers applying for CFAP 2 for the first time when the application period opens on April 5.
Articles are property of CCM; please seek permission from CCM for the use of articles.