Legislative Update: CFAP 2 guide for corn farmers
Given the economic disruption in agriculture as a result of the COVID-19 pandemic, it was anticipated that USDA was working to develop a program to assist farmers with ongoing impacts and to help cover partial loses from the market disruption. The Minnesota Corn Growers Association (MCGA) advocated for additional assistance to help cover loses on the 2020 crop during our July virtual D.C. fly-in.
On Sept. 18, the U.S. Department of Agriculture (USDA) announced up to an additional $14 billion for farmers who continue to face market disruptions and associated costs due to COVID-19. The Coronavirus Food Assistance Program (CFAP 2) will provide assistance to farmers for price loses for marketing the 2020 crop. USDA is using funding from the Commodity Credit Corporation (CCC) previously authorized in the CARES act. Program sign up began Sept. 21 and will run through December 11. CFAP 2 is a separate program from CFAP 1.
CFAP 2 will assist farmers with loses in several categories including row crops, livestock, specialty crops, broilers and eggs and aquaculture. For general information on CFAP 2 and the different categories included, visit www.farmers.gov/cfap
Corn is an eligible commodity under the row crop/price triggered commodity. A price trigger commodity experienced at least a 5-percent price decline in average prices when comparing the weeks of January 13-17, 2020 to July 27-31, 2020. USDA has a specific webpage on CFAP 2 information on row crops. www.farmers/gov/cfap/row-crops
Payments for price trigger row crops (corn) will be the greater of:
- Eligible acres of corn multiplied by $15 per acre OR
- Eligible acres multiplied by nationwide crop marketing percentage (40% for corn) multiplied by the payment rate ($0.58 for corn) and then by the weighted 2020 Actual Production History (APH).
The effective or net payment rate for corn will be $0.23 per bushel of APH. Payments are limited to 2020 crop year planted acres. For acres impacted by disasters like the derecho or hurricanes, those acres will still be eligible even if farmers are not able to harvest. If crop acres were prevented from being planted, those acres are ineligible for CFAP 2. Payment limits are in effect for CFAP 2 and the total payment for an individual is capped at $250,000. The payment limit for CFAP 2 are separate from limits in place for CFAP 1 or other USDA programs.
Finally, on the CFAP 2 front, USDA is hosting a webinar for farmers to go over CFAP 2 program information on Thursday, September 24 at 2:00pm. You can preregister for the webinar here. You can also access USDA’s CFAP 2 Eligible Commodities Finder to find payment rates and the information specific to the commodities they grow or raise.
Also in Washington D.C., Democratic Party leadership in the House reached an agreement with the administration on a continuing resolution that would keep the federal government funded through December 11th. The funding bill included replenishment funds needed for the Commodity Credit Corporation so USDA could continue to administer necessary programs. The bill also includes a provision to prohibit USDA from making payments to fossil fuel refiners and importers. Ethanol and other biofuel producers would not be subject to this prohibition. The funding bill passed the House on a vote of 359-57 and the Senate is expected to vote on the measure next week.
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