Mark Martin
Farm Service Agency, Westminster
Click here to go to the USDA CFAP website.
Beginning Tuesday, May 26, through Friday, August 28, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers 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.
USDA Service Centers are open for business by phone appointment only. At this time and until further notice, applications will only be accepted through phone appointments or online (farmers.gov/cfap).
Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.
There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions. Producers new to doing business with FSA must complete the required eligibility forms within 60 days of submitting their CFAP application. No action for payment will be taken on their CFAP application until those required forms are received and eligibility determinations are made.
Eligible commodities are non-specialty crops, wool, livestock, dairy, and specialty crops. Value loss crops may be added later if it can be determined that a qualifying loss was suffered.
Qualifying non-specialty crops applicable to Maryland and their payment rates are as follows (complete list can be found at https://www.farmers.gov/cfap/non-specialty)…
|
Commodity |
Unit of Measure |
CARES Act Payment Rate |
CCC Payment Rate |
| Malting Barley | bushel |
$0.34 |
$0.37 |
| Corn | bushel |
$0.32 |
$0.35 |
| Millet | bushel |
$0.31 |
$0.34 |
| Oats | bushel |
$0.15 |
$0.17 |
| Sorghum | bushel |
$0.30 |
$0.32 |
| Soybeans | bushel |
$0.45 |
$0.50 |
| Sunflowers | pound |
$0.02 |
$0.02 |
| Wool (graded, clean basis) | pound |
$0.71 |
$0.78 |
| Wool (non-graded, greasy basis) | pound |
$0.36 |
$0.39 |
Crops used or intended for grazing are not eligible.
Each producer of the above will be required to self-certify based upon their own records, per commodity, their total production in 2019 and 2019 production subject to price risk (any production, sales, and/or inventory that is not subject to an agreed-upon price in the future through forward contract, agreement, or similar binding document) and unsold production as of January 15, 2020. All certifications are subject to review and/or spot-check.
Producer’s eligible production is 2019 production subject to risk and not sold as of January 15, 2020, not to exceed 50 percent of the producer’s total 2019 production. Fifty percent of the eligible production will be paid using the CARES Act funding and payment rate and the remaining 50 percent using CCC funding and payment rate.
Eligible livestock and their payment rates are as follows…
|
Livestock |
Eligible Livestock |
Unit of Measure |
CARES Act Payment Rate |
CCC Payment Rate |
|
Cattle |
Feeder Cattle – less than 600 pounds | Head |
$102.00 |
$33.00 |
| Feeder Cattle – 600 pounds or more | Head |
$139.00 |
$33.00 |
|
| Slaughter Cattle – fed cattle | Head |
$214.00 |
$33.00 |
|
| Slaughter Cattle – mature cattle | Head |
$92.00 |
$33.00 |
|
| All Other Cattle* | Head |
$102.00 |
$33.00 |
|
|
Hogs & Pigs |
Pigs – less than 120 pounds | Head |
$28.00 |
$17.00 |
| Pigs – 120 pounds or more | Head |
$18.00 |
$17.00 |
|
| Lambs & Yearlings | All Sheep Less Than 2 Years Old | Head |
$33.00 |
$7.00 |
*Livestock intended for dairy are not eligible, but their milk production is eligible under Dairy.
Each producer of the above will be required to self-certify, per eligible livestock type, their owned inventory subject to price risk as of January 15, 2020, and any offspring from that inventory, that were sold between January 15 and April 15, 2020, and/or their highest owned inventory between April 16 and May 14, 2020. Again, all certifications are subject to review and/or spot-check.
Payment is calculated on the sum of the number of head sold times the CARES Act payment rate and/or the number of head in inventory times the CCC payment rate.
Eligible Dairy operations that were commercially marketing milk during January – March 2020, or until the dissolution of the dairy operation during that time period, will self-certify, based upon their production records, their milk production, in pounds, for each of those months, January, February, and March 2020 that was subject to price risk, including dumped milk. The dairy payment rate is $0.0471 per pound under the CARES Act funding and $0.0147 per pound under the CCC funding. Again, all certifications of production are subject to review and/or spotcheck.
Specialty crop producers will self-certify, subject to review and/or spot-check, per commodity their total volume of production subject to price risk sold between January 15, 2020 and April 15, 2020, their total volume of production subject to price risk shipped/delivered but not sold/unpaid between January 15, 2020 and April 15, 2020, and acres left in the field or harvested but not shipped/delivered between January 15, 2020 and April 15, 2020. Volume of production is paid under CARES Act funding and acres not delivered are paid under CCC funding. Eligible specialty crops (not a comprehensive list, contact FSA for full list) are the following (please contact the office for the specific payment rates as the list is extensive)…Almonds, Apples, Artichokes, Asparagus, Avocados, Beans, Blueberries, Broccoli, Cabbage, Cantaloupe, Carrots, Cauliflower, Celery, Cucumbers, Eggplant, Garlic, Lettuce – Iceberg & Romaine, Mushrooms, Onions – Dry & Green, Peaches, Pears, Peppers – Bell & Other, Potatoes, Raspberries, Rhubarb, Spinach, Squash, Strawberries, Sweet Corn, Sweet Potatoes, Tomatoes, Walnut, and Watermelon.
Regardless of commodity, to ensure the availability of funding throughout the application period, 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 as funds remain available.
Once you have reviewed and summarized your production records for the above eligible commodities, call your local FSA office to set up an appointment to complete an application by phone or email. Additional information and application forms can be found at farmers.gov/cfap.
