What Farmers Need To Know About The USDA Relief Program

August 17, 2020

By Lacie Armstrong

Agriculture is the backbone for many countries and economies, but with the Covid-19 pandemic interfering with the normal way farmers and ranchers work, the USDA is having to work harder than ever.

Programs and services to American farmers and ranchers while incorporating safety measures are the first priority for the USDA. While service centers have not been open for several months, employees are still working hard to help agricultural producers with programs such as: disaster assistance, safety nets, conservations and farm loans.

Farm loan programs and services can be described as: conservation planning and acreage reporting while supporting flexibilities for these producers and implanting Coronavirus Aid Relief and Economic securities (CARES) Act.

More Current USDA flexibilities and programs for farmers and ranchers include:

  • Coronavirus food assistance program
  • Farm loan flexibilities
  • Animal mortality
  • Dumped milk
  • Commodity loan flexibilities
  • Crop acreage reporting
  • Crop insurance flexibilities

The USDA Secretary Sonny Perdue announced on April 17th 2020 that the Coronavirus Food Assistance Program will provide $16 billion in direct support related to Covid-19. CFAP provides direct relief to producers who faced price declines and additional marketing costs due to COVID-19. A range of commodities are eligible for CFAP, including potatoes, apples, malting barley and soybeans. A full list of eligible non-specialty, specialty, livestock, dairy, and wool commodities can be found at farmers.gov/cfap.

HOW TO KNOW IF YOU ARE ELIGIBLE:
To be eligible for a CFAP payment, a farmer must:

  1. Complete a CFAP application form and provide any required documentation within 60 days of signing their application
  2. Be a producer having a share in the eligible commodity between January 15 – April 15, 2020, or April 16 – May 14, 2020
  3. Be either a: 
    1. U.S. Citizen
    2. Resident Alien providing land, capital, and active personal labor in the farming operation
    3. Partnership of U.S. Citizens
    4. Corporation, Limited Liability Company, or other organization recognized under State law
    5. Indian Tribe or Tribal Organization
    6. Foreign Person providing land, capital, and active personal labor in the farming operation 
    7. Foreign Entity that has more than 10 percent of its beneficial interest held by individuals that are not US Citizens or Lawful Aliens

Contract growers who do not own livestock but whose contract allows them to have risk in the livestock are also eligible for CFAP payments.

Privately owned aquaculture businesses growing freshwater and saltwater products in controlled environments, including raceways, ponds, tanks, and recirculating systems, extending to all farmed shrimp and salmonids (trout and salmon) are also eligible.

Are There Eligibility Restrictions?
Federal, state, and local governments are prohibited from participating in CFAP. An individual or entity with an average adjusted gross income (AGI) of more than $900,000 – based on the average gross incomes for 2016, 2017, and 2018 tax years – is also ineligible unless they derive at least 75 percent of their income from farming, ranching, or forestry related activities, in which case there is no AGI restriction. There is no AGI limit for joint ventures or general partnerships. This AGI threshold is significantly less strict than in previous USDA support payment programs.

The USDA is pushing farmers and ranchers to apply for CFAP after reviewing the success in one of the most popular states for U.S Agriculture, Idaho. In Idaho, already, 3,972 applications have been approved and $125 million disbursed as of July 23. Farmers still unsure about CFAP and their operation are encouraged call 877-508-8364 to learn about eligibility and options to apply.

The USDA is also accepting CFAP applications now through August 28, 2020. For more information on how to apply please visit farmers.gov/cfap.

In addition to the CARES ACT and CFAP, the Farm Service Agency is working alongside the Natural Resources Conservation Service and Risk Management Agency to provide additional services to impacted agriculture producers from the Coronavirus outbreak. These updates will be available in the coming weeks.