Pandemic challenges resilient farmers, ranchers

By BARBARA ANN HORTON

Staff Writer

America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic, said Aaron Sandlin, Butler County Farm Service Agency county executive director.

The United States Department of Agriculture is committed to ensuring farmers and ranchers remain in business to produce the food, fuel and fiber America needs to thrive, Sandlin said.

Area farmers and ranchers impacted by the coronavirus may be eligible for additional direct assistance provided by the USDA.

Expansion of the Coronavirus Food Assistance Program began Sept. 21 with applications ending Dec. 21.

“All of the commodities identified as eligible for the Coronavirus Food Assistance Program 2 have been commodities that have been determined to have been impacted by the pandemic. Any individual or legal entity who shares in the risk of producing one of these commodities may apply for CFAP 2,” Sandin said.

Eligible commodities for CFAP 2 include non-specialty crops, wool, livestock (excluding breeding stock), dairy, specialty crops, floriculture and nursery crops, aquaculture, broilers and eggs and tobacco.

The funds are available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. .

Producers can apply for CFAP 2 at USDA’s Farm Service Agency (FSA) county offices. This program provides financial assistance, giving producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. Producers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.

CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities.

Price Trigger Commodities

Price trigger commodities are major commodities meeting a minimum 5% price decline over a specified period of time.

Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat.

Payments are based on 2020 planted acres of the crop, excluding prevented planting and experimental acres.

Payments for price trigger crops will be the greater of the eligible acres multiplied by a payment rate of $15 per acre or the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate and then by the producer’s weighted 2020

production History (APH) approved yield

If the APH is not available, 85%of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for that crop will be used.

For broilers and eggs, payments will be based on 75%of the producer’s 2019 production.

Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31. The milk production for Sept. 1, to Dec. 31, 2020, will be estimated by FSA.

Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between April 16, and Aug. 31, 2020.

Flat-rate Crops

Crops that either do not meet the 5% price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed and several others.

Sales Commodities

Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur, or feathers.

Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.

Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program.

A complete list of eligible commodities, payment rates and calculations can be found on farmers.gov/cfap.

Eligibility

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 when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000, unless at least 75% 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.

Applying for Assistance

Producers can apply for assistance through Dec. 11.

Additional information and application forms can be found at farmers.gov/cfap. Documentation to support the producer’s application and certification may be requested.

All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply.

For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with the FSA county office to see if any of the forms need to be updated.

Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.