USDA to Provide $16 Billion in Direct Assistance to Farmers and Ranchers
Category: Latest News
Apr
23
The U.S. Department of Agriculture (USDA) has announced the $19 billion Coronavirus Food Assistance Program (CFAP) to support farmers and ranchers during the COVID-19 pandemic, according to Sen. John Hoeven (R-N.D.), chairman of the Senate Agriculture Appropriations Committee. The program will include:
- $16 billion in direct payments for farmers and ranchers, funded using the $9.5 billion emergency program in the CARES Act and $6.5 billion in Credit Commodity Corporation (CCC) funding.
- $3 billion in purchases of agriculture products, including meat, dairy and produce to support producers and provide food to those in need.
Producers will receive a single payment determined using two calculations:
- Price losses that occurred Jan. 1 to April 15, 2020. Producers will be compensated for 85% of price loss during that period.
- The second part of the payment will be expected losses from April 15 through the next two quarters and will cover 30% of expected losses.
The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity. Qualified commodities must have experienced a 5% price decrease between January and April. The USDA is expediting the rule making process for the direct payment program and expects to begin sign-up for the new program in early May and to get payments out to producers by the end of May or early June. Read more.
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