Application period now open for CFAP 2

Farmers can begin signing up this week for a second round of direct payments from the federal government under the Coronavirus Food Assistance Program to help offset losses caused by the pandemic.

The U.S. Department of Agriculture allows farmers to sign up for CFAP 2 online or through a local Farm Service Agency office until Dec. 11.

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

Milk calculations: Financial assistance will be based a farmer’s certification of milk production from April 1 to Aug. 31. Milk disposed of due to market conditions in this time period is eligible. Producers must have records of all milk production claimed in CFAP. 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 of other commodities planted or livestock raised during the crisis.

• Beef: Dairy calves and dairy steers raised for the beef market will be eligible for $55 per head beef payments. Breeding animals, such as replacement and bred heifers, culled cows and bulls, are not eligible. Producers are able to select their highest one-day inventory of animals raised for beef from April 16 to Aug. 31.

• Row crops: Specific payments for crops will depend on the type of commodity and acres planted in 2020.

Payments are based on actual reported planted acres during 2020. Prevented planted acres or crops intended for grazing or green manure and crops left standing are excluded. Find more specific row crop 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 the limit for individual members is $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.

The online application portal, application form and a payment calculator and other information are on this USDA webpage.

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