This week, the USDA announced the details as it pertains to the Coronavirus Food Assistance Program (CFAP) for livestock producers. Beginning May 26th, USDA’s Farm Service Agency will be accepting applications from agricultural producers who have suffered losses.
The following is a summary of noteworthy information on the program regarding the inventory time period in affect and payment limitations and structure:
CFAP assistance is available to livestock producers who have an ownership interest in eligible livestock that have suffered a five percent-or-greater price decline as a result of the COVID-19 pandemic and face additional significant costs in marketing their inventories due to unexpected surplus and disrupted markets.
Livestock eligible for CFAP include cattle, hogs, and sheep. Specifically, eligible livestock are:
- Pigs (< 120 lbs.)
- Hogs (> 120 lbs.)
- Feeder Cattle (<600 lbs.)
- Feeder Cattle (> 600 lbs.)
- Slaughter Cattle: Fed Cattle
- Slaughter Cattle: Mature Cattle
- All Other Cattle (not including livestock used, or intended for, dairy production).
Lambs and yearlings (less than 2 years of age)
CFAP Payments for Livestock
A single payment for livestock will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.
Producers must provide the following information for CFAP:
- Total sales of eligible livestock, by species and class, between January 15, 2020, to April 15, 2020, of owned inventory as of January 15, 2020, including any offspring from that inventory; and
- highest inventory of eligible livestock, by species and class, between April 16, 2020, and May 14, 2020.
CFAP Payment Limitations and Structure:
CFAP payments are subject to a per person and legal entity payment limitation of $250,000. This limitation applies to the total amount of CFAP payments made with respect to all eligible commodities.
Unlike other FSA programs, special payment limitation rules will be applied to participants that are corporations, limited liability companies, and limited partnerships (corporate entities).
These corporate entities may receive up to $750,000 based upon the number of shareholders (not to exceed three shareholders) who contribute at least 400 hours of active person management or personal active labor.
For a corporate entity:
- With one such shareholder the payment limit for the entity is $250,000
- With two such shareholders, the payment limit for the entity is $500,000 if at least two members contribute substantial labor or management with respect to the operation of the corporate entity
- With three such shareholders, the limit is $750,000 if at least three members contribute substantial labor or management with respect to the operation of the corporate entity.
What should pork producers do now?
Your local FSA staff will assist you in applying for the program at local USDA Service Centers. Be prepared to provide the following information:
- Personal, including your Tax Identification Number
- Farming Operating Structure
- Adjusted Gross Income to ensure eligibility
- Direct deposit to enable payment processing
The following forms will be needed for CFAP. If you are an existing customer, this information is likely on file at your local Service Center.
- CCC-901 (Also Available in Spanish) – Identifies members of a farm or ranch that is a legal entity. Member Information will be completed by legal entities and joint operations to collect the following: member names, addresses, and Tax Identification Numbers; and citizenship status.
- CCC-941 (Also Available in Spanish) – Reports your average adjusted gross income for programs where income restrictions apply.
- CCC-942 – If applicable, this certification reports income from farming, ranching, and forestry, for those exceeding the adjusted gross income limitation.
- AD-1026 (Also Available in Spanish) – Ensures compliance with highly erodible land conservation and wetland conservation.
- AD-2047 – Provides basic customer contact information.
- SF-3881 – Collects your banking information to allow USDA to make payments to you via direct deposit.
USDA plans to begin issuing payments the first week of June.
More information can be found at farmers.gov/cfap.
CFAP Aid Payment Rules: What Pork Producers Need to Know