Applications received represent only 24% of all farm operations.

Jacqui Fatka, Policy editor

August 7, 2020

3 Min Read
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MORE MONEY: USDA announces details of offering 80% indemnity payments for livestock producers who had to depopulate animals during COVID pandemic meat processing plant shutdowns.iStock Getty Images

Producers have until Aug. 28 to sign up for the Coronavirus Food Assistance Program (CFAP) administered by the U.S. Department of Agriculture. However, 28 agricultural groups are asking for USDA to extend that deadline and to announce the second tranche of payments and evaluate additional eligibility.

As of Aug. 3, 2020, USDA has paid out $6.8 billion to nearly 500,000 applicants. Cattle producers have received the bulk of the funds, at $2.98 billion, followed by milk at $1.3 billion, corn at $1.2 billion and hogs at $430 million. (Click here for the latest breakdown.)

The Coronavirus Aid, Relief & Economic Security (CARES) Act provided $9.5 billion in funding to support those affected by the market fallout, along with additional funds already left in the Commodity Credit Corp. to offer nearly $16 billion total to help direct to producers who needed it most.

The letter states, however, that the current deadline “may exclude eligible producers from participating in the program, including producers of commodities that were recently added to the list of eligible commodities and commodities that are likely to become eligible through the NOFA [notice of funding availability] process.”

Along with extending the deadline, the letter strongly encourages USDA to “increase producer and stakeholder engagement initiatives. While the department has done a commendable job in reaching out to all affected parties, communication and outreach by FSA [Farm Service Administration] staff has likely been significantly impacted by the lack of face-to-face interactions; in addition, many producers eligible for CFAP have had limited or no previous interaction with FSA staff.”

Related:House ag leaders call for sheep, lamb inclusion in CFAP

The 499,156 applications received represent only 24% of all farm operations. Producers of several commodities have seen extremely low participation rates, including carrots at 1%, oranges at 2%, tomatoes at 6% and apples at 10%. Those numbers may indicate many farmers are not aware they qualify for CFAP assistance. The 22,224 dairy applications received represent approximately 65% of licensed dairy operations. “The disparity between approved applications and the number of farm operations points toward the need for additional farmer and stakeholder engagement and a signup deadline extension,” the letter added.

The letter also asks USDA to re-evaluate the payment limit structure. “We continue to believe that the limits are too restrictive and disproportionately impact specialty crops, dairy, hogs and cattle producers,” the letter stated. “The payment limit structure should be reconsidered with respect to the scale of these operations, especially as USDA contemplates a path forward for utilizing the $14 billion replenishment that Congress provided for the Commodity Credit Corp. and well as any funds not distributed through the first and second tranche of CFAP payments.”

Related:USDA asked to provide egg producers with CFAP funds

USDA’s CFAP cost/benefit analysis estimated the initial tranche of CFAP payments at $15.4 billion. Commodities lagging significantly in CFAP support include hogs and pigs at 20%, upland cotton at 49%, dairy at 47%, soybeans at 51%, both wheat classes at less than 60%, corn at 66% and cattle at 69%. At $270 million, specialty crop payments represent only 12% of the estimated CFAP payments, the letter noted.

American Farm Bureau Federation president Zippy Duvall said, “The fact that there is still money available should not lead anyone to believe that the needs of America’s farmers have all been met. Farmers and ranchers are still struggling to make ends meet, and the pandemic is far from over. We need to increase awareness, and that means USDA turning it up a notch, along with ag groups. We’re certainly working to ensure those eligible know the aid is available.”

About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

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