Dear Ag Producers,
On Tuesday President Trump and the USDA announced additional details related to the Coronavirus Food Assistance Program (CFAP). The CFAP will utilize $19 Billion in funds provided by the CARES Act: $16 Billion in direct payments to ag producers and $3 Billion for direct food supply chain purchases. CFAP assistance is available for any producer of agricultural commodities that incurred a 5% or greater price decline from mid-January to mid-April. Payment amounts may be dependent on commodity inventory levels at January 15. Payment limits per commodity and per entity apply, but were recently increased and expanded for certain entity types. Income limits that apply to other FSA payments have been removed for the CFAP if greater than 75% of income is from farming. Additional guidance is still needed on certain issues, but for a full list of eligible commodities, payment limits, payment rates, and more information, visit https://www.farmers.gov/cfap#.
Signup for the CFAP Program will be done at your local FSA office beginning on Tuesday, May 26. The application form should be available online once the sign-up is open, but other forms can be completed and information gathered prior to then. We recommend calling your local FSA office with questions.
Van Bruggen & Vande Vegte, PC