Signup begins Monday for second round of farm payments

Starting on Monday, farmers can begin signing up for a second round of direct payments from the federal government to help offset losses caused by the pandemic.

The U.S. Department of Agriculture today released details of an expansion of the Coronavirus Food Assistance Program. The first round of assistance ended Sept. 11.

Farmers can sign up for CFAP 2 online or through a local Farm Service Agency office beginning Sept. 21. The deadline is Dec. 11.

Eligibility: Dairy farms must be in business and marketing milk at the time of application. Farms that have dissolved before Sept. 1 are not eligible for CFAP 2 payments.

Milk calculations: Financial assistance will be based a farmer’s certification of milk production from April 1 - Aug. 31. The amount of assistance for milk production will be equal to the sum of:

• Total actual milk production from April 1 to Aug. 31, multiplied by the payment $1.20 per hundredweight
• Estimated milk production from Sept. 1 to Dec. 31, based on the daily average production from April 1 to Aug. 31, multiplied by 122, multiplied by a payment rate of $1.20 per hundredweight

Other commodities: In addition to milk price losses, dairy farms will again be eligible for assistance for other commodities they planted or sold during the COVID-19 crisis. It is unclear yet whether dairy animals will be eligible for livestock payments. Specific payments for crops will depend on the type of commodity and acres planted in 2020. Crops include alfalfa, corn, sorghum, soybeans, triticale and several others. Find more specific information here.

Payments: Payment limitations will follow similar rules from the first round of assistance. Payments are capped at $250,000 per person or legal entity unless the entity includes multiple members in a corporation, LLC, LP, trust or estate. The payment limit for those entities will again be $750,000 and with the limit for individual members being $250,000. CFAP 2 limitations are separate from the first round. The caps apply to the total amount of payments with respect to all eligible commodities. Adjusted gross income limitations apply.

Get prepared: More information can be found online on this USDA webpage.

The application form and a payment calculator will be added to the website on Monday.

Our team will keep you updated as we learn more. If you are experiencing issues in the application process regarding your farm’s eligibility, please contact us.

 
Thank you.

Aaron Stauffacher
Associate director of government affairs
astauffacher@dairyforward.com