A message for our readers

The Galena Gazette is providing all of its news stories and photos of the COVID-19 pandemic with no payment required as a public service and in an effort so you can be totally knowledgeable as to how the pandemic affects you. Please consider a print or online subscription to support this vital reporting by a locally owned business .

USDA: COVID-19 help for farmers

Posted

SPRINGFIELD–The Coronavirus Food Assistance Program (CFAP) will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition USDA’s Farmers to Families Food Box program is partnering with distributors, whose work forces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.

The USDA, through the Farm Service Agency (FSA), is accepting applications from producers.

CFAP provides financial assistance to producers of agricultural commodities who have suffered a 5-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.

Advertisement Advertisement

Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source 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.

Falling under the CFAP umbrella are non-specialty crops including malting barley, corn, soybeans, sorghum and sunflowers; wool; livestock; dairy; and specialty crops,

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 can apply for assistance beginning May 26. Information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the sign up process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through Aug. 28. 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.