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USDA releases details of the Coronavirus Food Assistance Program

About the Coronavirus Food Assistance Program

USDA Secretary Sonny Perdue announced the Coronavirus Food Assistance Program on April 17, 2020. CFAP will use funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act, the Families First Coronavirus Response Act, and other USDA existing authorities. This $19 billion immediate relief program includes direct support to agricultural producers as well as the Farmers to Families Food Box Program.

CFAP will provide vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline or who had losses due to market supply chain disruptions due to COVID-19 and face additional significant market costs.

Eligible farmers and ranchers will receive one CFAP payment, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the CARES Act and compensates farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and for specialty crops for product that was shipped and spoiled or unpaid product. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.

Beginning May 26, USDA’s Farm Service Agency will be accepting applications from agricultural producers who have suffered losses. While offices are open by phone appointment only, FSA will be working with our agricultural producers by phone and using email and online tools to process applications.

The application form and a payment calculator for producers will be available online once signup begins. A video preview of the payment calculator is currently available.

To learn more about CFAP, download the final rulenotice of funding availability, and cost-benefit analysis.

This information is taken from the United States Department of Agriculture’s farmers.gov.

 

Dairy Farmers and the CFAP

Dr. Mark Stephenson, a dairy economist at UW-Madison, and his colleagues released an informational letter on the details of the dairy portion of the program that may be helpful to members. Cooperative Network has passed along the letter from the program that may apply to All American Co-op dairy producers, specifically. You can find the letter here.

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