Hoeven: USDA Releases Details on CFAP 2, Sign Up to Start Monday, September 21
Assistance Provided Using $14 Billion Senator Secured for Farmers and Ranchers in CARES ACT
WASHINGTON – Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee, today issued the following statement after the U.S Department of Agriculture (USDA) released details for the Coronavirus Food Assistance Program (CFAP) 2, relief for farmers and ranchers provided using the $14 billion in Commodity Credit Corporation (CCC) funding Hoeven secured in the CARES Act. USDA estimates it will provide about $13.2 billion when payment limitations are applied.
Hoeven has been working to secure additional assistance for producers using the $14 billion in CCC funding from the CARES Act. Over the last two months, Hoeven has spoken to and met with numerous officials in the White House and USDA about the importance of using the funds to provide assistance and the needs of North Dakota farmers and ranchers, including advancing this priority this week in conversations with U.S. Agriculture Secretary Sonny Perdue and Office of Management and Budget Director Russ Vought.
“Farmers and ranchers wake up every morning with a determination to meet tough markets and weather conditions, working hard to provide the food, fuel and fiber our nation needs. Our producers don’t quit and Congress must match this resolve with measures to help them through this difficult time, which is why we secured $14 billion in CCC funding under the CARES Act to provide our farmers and ranchers with COVID-19-related support,” said Hoeven. “CFAP 2 comes at a crucial time for our producers. The coronavirus pandemic has disrupted the ag economy and we need to do all we can to help our producers weather these challenges. We appreciate USDA’s efforts to get this assistance out and at the same time, we continue working to provide additional assistance to help our farmers and ranchers.”
CFAP 2 provides coverage for non-specialty crops, livestock, dairy and specialty crops. Sign-up for the program will begin Monday, September 21. CFAP 2 includes the following three categories of payments:
Price Trigger Commodities
- Includes commodities that experienced a 5% or greater price decline over a specified period of time.
- For non-specialty crops, producers will receive a payment based on the greater of:
- Eligible 2020 acres multiplied by $15 per acre, or
- Eligible 2020 acres multiplied by a specific crop-rate, multiplied by a nationwide crop marketing percentage, based on a producers weighted 2020 actual production history (APH).
- For livestock, producers will receive a per head payment for marketable livestock held in inventory from April 16 to August 31.
Flat Rate Commodities
- Includes commodities that did not experience a price decline or lacked sufficient data to prove a decline.
- Producers will receive a payment of $15 per acre based on 2020 acres for commodities in this category.
- Includes specialty crops, specialty livestock and other commodities not included in previous categories for which a price decline could not be calculated.
- Producers will be compensated for 2020 revenue declines, based off of a portion of their 2019 sales.
Payments will be subject to payment limitations and adjusted gross income restrictions. Additional information on the CFAP 2 is available from USDA at www.farmers.gov
As chairman of the Agriculture Appropriations Committee, Hoeven continues working to secure additional support for farmers and ranchers and is also advancing the standard, full reimbursement of the CCC as part of a continuing resolution for farm bill programs. On Wednesday, Hoeven led a Senate colloquy with members of the Senate Agriculture Committee outlining the importance of the fully reimbursing the CCC.
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