Coronavirus Food Assistance Program
On April 17th, President Trump and Agriculture Secretary Sonny Perdue announced the Coronavirus Food Assistance Program (CFAP) which would utilize $9.5 billion in funding from the CARES Act, in conjunction with $6.5 billion in existing Commodity Credit Corporation (CCC) funds to provide $16 billion in direct assistance to producers. Separate funding from the Families First Coronavirus Response Act is also being utilized to make up to $3 billion in purchases of fruit and vegetables, meat, and dairy products over the course of the next 10 months.
USDA has issued the final rule detailing the parameters of the direct assistance to producers and Congressman Doug LaMalfa’s office has outlined their guidance below. Congressman LaMalfa remains committed to alleviating any loss as a result of COVID-19 in the agriculture sector and holding USDA accountable for a speedy and seamless rollout of CFAP.
Direct Assistance Summary
USDA will accept CFAP applications from May 26th through August 28th. A producer will certify the amount of inventory or production of each eligible crop with the Farm Service Agency (FSA). USDA will then make a payment to a producer equal to 80% of the total amount the producer is eligible for (up to the payment limitation). The remaining portion of the payment will be dispersed at a later date, subject to funding availability.
Direct payments to producers for losses will be calculated using a specified amount of production that was either at risk (i.e. not in a forward contract and shielded from price volatility) and marketed or held in inventory multiplied by the applicable payment rate. Funding for CFAP was derived from the CARES Act and existing CCC funds.
Contact information for all FSA offices in in the North State are at the bottom of this email.
Payment Limitations on Direct Assistance
There will be a limitation on total assistance that a producer may receive of $250,000 for all commodities combined. Married individuals will be eligible for spousal doubling rules.
Additionally, certain entities with multiple partners or members (like an LLC or S-corp) will be able to designate up to 3 members to each be considered eligible for a separate payment cap. These individuals must have provided at least 400 hours of active personal management or labor to be eligible for payments under CFAP.
Individuals or entities with greater than $900,000 in Adjusted Gross Income (AGI) are ineligible for assistance unless the operation derives more than 75% of their income from farming, ranching, and forestry.
Eligible commodities include:
- Non-specialty Crops: malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat
- Livestock: cattle, hogs, and sheep (lambs and yearlings only)
- Specialty Crops
- Fruits: apples, avocados, blueberries, cantaloupe, grapefruit, kiwifruit, lemons, oranges, papaya, peaches, pears, raspberries, strawberries, tangerines, tomatoes, watermelons
- Vegetables: artichokes, asparagus, broccoli, cabbage, carrots, cauliflower, celery, sweet corn, cucumbers, eggplant, garlic, iceberg lettuce, romaine lettuce, dry onions, green onions, peppers, potatoes, rhubarb, spinach, squash, sweet potatoes, taro
- Nuts: almonds, pecans, walnuts
- Other: beans, mushrooms
Farmers to Families Food Box Program
As announced on April 17th, USDA has partnered with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase up to $3 billion in fresh produce, dairy, and meat. USDA’s announced intent was to procure an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products.
As announced by USDA Agricultural Marketing Service (AMS) on May 8, the program will purchase $1.2 billion in eligible products, for delivery from May 15 to June 30, 2020, including in $461 million in fresh fruits and vegetables, $317 million in a variety of dairy products, $258 million in meat products, and $175 million in a combination box of fresh produce, dairy or meat products. Suppliers will package these products into family-sized boxes, then transport them to food banks, community and faith-based organizations, and other non-profits serving Americans in need. AMS may elect to extend the period of performance of the contracts, via option periods, dependent upon program success and available remaining funds, up to $3 billion.
Congressman LaMalfa’s office will continue to serve as a resource for farmers and ranchers while navigating COVID-19 uncertainty. We thank you for your hard work in maintaining the stability of America’s food supply chain and keeping America fed.
Farm Services Agency
FSA Service Center Locator
SISKIYOU COUNTY FARM SERVICE AGENCY
215 EXECUTIVE CT STE A
YREKA, CA 96097-2629
SHASTA COUNTY FARM SERVICE AGENCY
3644 AVTECH PKWY
REDDING, CA 96002-9241
TEHAMA COUNTY FARM SERVICE AGENCY
2 SUTTER ST STE C
RED BLUFF, CA 96080-4353
BUTTE COUNTY FARM SERVICE AGENCY
150 CHUCK YEAGER WAY
OROVILLE, CA 95965-9215
GLENN COUNTY FARM SERVICE AGENCY
132 N ENRIGHT AVE
WILLOWS, CA 95988-2716
MODOC COUNTY FARM SERVICE AGENCY
221 W 8TH STREET
ALTURAS, CA 96101
LASSEN, PLUMAS, SIERRA COUNTIES FARM SERVICE AGENCY
170 RUSSELL AVE STE C
SUSANVILLE, CA 96130-4271
SUTTER, YUBA, NEVADA COUNTIES FARM SERVICE AGENCY
1521 BUTTE HOUSE RD STE A
YUBA CITY, CA 95993-2235
PLACER & SACRAMENTO COUNTIES FARM SERVICE AGENCY
9701 DINO DR STE 190
ELK GROVE, CA 95624-4042