USDA issues first CFAP payments to farmers

The USDA and Farm Service Agency have issued the first round of Coronavirus Food Assistance Programme payments to farmers, approving more than $545 million to producers who have applied for the programme.
calendar icon 8 June 2020
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FSA began taking applications May 26, and the agency has received over 86,000 applications for this important relief program.

USDA Secretary Purdue siad:

“The coronavirus has hurt America’s farmers, ranchers, and producers, and these payments directed by President Trump will help this critical industry weather the current pandemic so they can continue to plant and harvest a safe, nutritious, and affordable crop for the American people.

“We have tools and resources available to help producers understand the program and enable them to work with Farm Service Agency staff to complete applications as smoothly and efficiently as possible and get payments into the pockets of our patriotic farmers.”

In the first six days of the application period, FSA has already made payments to more than 35,000 producers. Out of the gate, the top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska, and South Dakota. USDA has released data on application progress and programme payments and will release further updates each Monday at 2:00pm ET. The report can be viewed here.

FSA will accept applications through 28 August 2020. Through CFAP, USDA is making available $16 billion in financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

In order to do this, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date nationwide, as funds remain available.

Click here for further policy clarifications and information on applying.

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