Ag Comm Gipson Encourages Farmers to Sign Up for the USDA’s 2nd Round of Coronavirus Food Assistance
Commissioner of Agriculture and Commerce Andy Gipson applauds the Trump administration and the U.S. Department of Agriculture on the second round of the Coronavirus Food Assistance Program (CFAP 2), which will provide an additional $14 billion dollars for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for CFAP 2 began September 21 and will run through December 11, 2020.
“I encourage all of our farmers across the state to evaluate the impact of COVID-19 on their operations and consider whether this program could help in their recovery,” said Commissioner Gipson. “Additional commodities have been added to CFAP 2, and I thank the Trump administration for making these commodities eligible for the program.”
CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities. Price trigger commodities are major commodities that meet a minimum five-percent price decline over a specified period of time. Flat-rate crops either do not meet the five-percent price decline trigger or do not have data available to calculate a price change. Sales commodities eligible for CFAP 2 include specialty crops, aquaculture, nursery crops and floriculture, and other commodities not included in the price trigger and flat-rate payment categories. The full list of eligible commodities outlined by payment category can be viewed at www.farmers.gov/cfap/commodities.
Under CFAP 2, there is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.
Producers will also have to certify that they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.
The application process for payments began on September 21. For a complete list of eligible commodities, payment rates and application submissions, producers should contact their local Farm Service Agency office or visit www.farmers.gov/cfap.