CFAP 2

USDA announced today more than $12 billion for the Pandemic Assistance for Producers, which will help farmers and ranchers who previously did not qualify for COVID-19 aid and expand assistance to farmers who have already received help. Farmers who previously submitted CFAP applications will not have to apply again. Sign-up for the new program begins on April 5.

Background

The last COVID-19 stimulus package of 2020, passed by Congress on Dec. 21, contained much-needed financial relief for agricultural producers. The bill’s agricultural provisions included additional assistance for producers, contract growers and producers who had to depopulate animals, supplemental coverage for Dairy Margin Coverage, and additional inventory payments for livestock producers. On Jan. 15, USDA announced that it would be moving forward with programs for selected provisions of the bill, including allowing contract growers to apply for assistance under CFAP 2 and updating the payment calculations for certain crops. Upon assuming office, the new administration put a hold on all of these last-minute programs (a common practice for incoming administrations) and put the new CFAP program under review. Today, USDA announced the review was complete for select commodities and released some details of its plans to distribute more than $12 billion under the Pandemic Assistance for Producers. These updates include reopening the Coronavirus Food Assistance Program 2 (CFAP 2), additional payments for eligible cattle and row crop producers, and the processing of payments for certain applications filed as part of CFAP Additional Assistance. USDA’s Farm Service Agency will accept new and modified CFAP 2 applications beginning April 5.