The U.S. Department of Agriculture is now accepting applications for the Coronavirus Food Assistance Program (CFAP). CFAP provides support to producers who have suffered a five percent-or-greater price decline due to COVID-19.
Dairy farmers can apply for assistance as of Tuesday, May 26. Call and set up an appointment with your local USDA Farm Service Agency (FSA) office to determine your eligibility and to apply for this assistance.
For dairy producers, a single payment will be made derived from two funding formulas intended to calculate losses caused by the coronavirus in 2020. The first and larger component is calculated from a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by $4.71 per hundredweight. The second component of the payment is based on a 1.4% increase in that first quarter production, multiplied by $1.47 per hundredweight. Overall, the payment amounts to $6.20/cwt. for a farm’s production in January through March of this year.
CFAP payment limitations of $250,000 per individual apply. Partners with at least 400 hours of management and/or labor annually in the operation may qualify for an individual cap up to three partners per operation. An average adjusted gross income limit of $900,000 for 2016, 2017 and 2018 applies unless 75% of the income comes from agriculture. Applicants must comply with USDA “Highly Erodible Lands and Wetland Conservation” provisions.
Signup began May 26 and continues through August 28 at FSA offices. Applicants have 60 days after signing the application to submit the required documentation. Payment will not be made until document requirements are met. Applications and necessary documentation can be submitted in person, by mail, e-mail, or fax.
Milk marketing volume data for Q1 2020 will be required for the calculation of the payment for each operation. Maryland & Virginia members can find this information on their March 2020 settlement statement that was issued in mid-April. If members are unable to find their statement, please contact your field representative or email the Producer Payroll Department.
Producers raising cattle for beef may also qualify for the cattle payment. Cattle used for, or intended to be used for, milk production do not fit the program definition for payments to make up for losses from cattle marketing.
More information and applications can be found here.
