How can the Coronavirus Food Assistance Program help producers?
Answer: USDA’s new Coronavirus Food Assistance Program (CFAP) provides assistance to farmers, ranchers, and consumers in response to the COVID-19 pandemic. Some $19 billion will be “to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need.”
CFAP will provide $16 billion in direct support to agricultural producers impacted by the COVID-19 pandemic. This support will include:
- Direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted.
- Assistance to producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
USDA has evaluated commodity-specific losses occurring during last four months for immediate assistance. Also, they are looking at projected supply disruptions over the next few months for sectors where prices have declined significantly for additional assistance.
CFAP is available to farmers regardless of size and market outlet, as long as the farmers have suffered an eligible loss (see above). USDA is already warning that that the disruption is significant enough that these payments will only cover a portion of the impacts on farmers and ranchers.
USDA will announce more details related to CFAP soon.
In the meantime, you can start preparing to apply by following these steps.
1. Contact your local USDA – Farm Service Agency (FSA) representative to start the process.
2. Be prepared to fill out the following forms. Do not send in any forms without making a calling to someone at FSA first.
- CCC-901 – Identifies members of a farm or ranch that is a legal entity (names of members, address, tax IDs)
- CCC-941 – Reports your average adjusted gross income for programs where income restrictions apply.
- CCC-942 – If applicable, this certification reports income from farming, ranching, and forestry, for those exceeding the adjusted gross income limitation ($900,000)
- AD-1026 – Ensures compliance with highly erodible land conservation and wetland conservatio
- AD-2047 – Provides basic customer contact information
- SF-3881 – Collects your banking information to allow USDA to make payments to you via direct deposit
3. Application acceptance date has not yet been released. Work on collecting:
- Tax Identification Number
- Farming Operating Structure
- Adjusted Gross Income