WASHINGTON – The US Department of Agriculture released a list of which producers will receive aid and new limits on aid granted under the Coronavirus Food Assistance Program (CFAP). The Farm Service Agency of the USDA will be accepting applications from agricultural producers who have suffered losses starting May 26.
Direct payments to producers will come from two sources, USDA said. The first source of funding is $9.5 billion provided in the CARES Act. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to ongoing market disruptions.
Livestock eligible for CFAP funds include cattle, hogs, and lambs and yearlings. Eligible livestock producers include those who have an ownership interest in eligible livestock that have suffered a 5% or greater price decline as a result of the coronavirus (COVID-19) pandemic and face additional significant costs in marketing their animals due to unexpected surplus and disrupted markets, USDA said.
To qualify, livestock producers must have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017 and 2018. However, if 75% of their adjusted gross income comes from farming, ranching, or forestry, the AGI limit of $900,000 does not apply, USDA said.
CFAP payments are subject to a limitation of $250,000, the agency added. The limitation applies to the total amount of CFAP payments made with respect to all eligible commodities. Payments will be made in installments with remaining payments made if funds remain available, USDA said.
The application and a payment calculator will be available online once signup begins.