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Coronavirus Food Assistance Program (CFAP) 2

Grants to USA Agricultural and Livestock Producers to
Mitigate the Negative Financial Impact of COVID-19

Agency Type:

Federal

Funding Source:

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U.S. Department of Agriculture (USDA) - Farm Service Agency (FSA)

Conf. Date:

09/24/20

Deadline Date:

12/11/20

Description:

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Grants to USA agricultural and livestock producers to mitigate the negative financial impact of the Coronavirus (COVID-19) health crisis. Funding is intended for applicants whose operations have been directly affected by the pandemic. Grants funds may be used for the purchase of materials and facilities required in connection with the production and marketing of agricultural commodities.

Coronavirus Food Assistance Program 2, CFAP 2, will provide producers with financial assistance that gives them the ability to absorb some of the increased marketing costs associated with the COVID-19 pandemic.

CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-Rate Crops, and Sales Commodities. Eligible commodities for each category are outlined below.

  • Price Trigger Commodities: Price trigger commodities are major commodities that meet a minimum five-percent price decline over a specified period of time. Price trigger commodities eligible for CFAP 2 are outlined below.
    • Broilers and eggs
    • Crops: barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat.
    • Dairy (cow’s milk)
    • Livestock: beef cattle, hogs and pigs, and lambs and sheep. Animals raised for breeding stock are not eligible for CFAP 2.
  • Flat-Rate Crops: Flat-rate crops either do not meet the five-percent price decline trigger or do not have data available to calculate a price change. Flat-rate crops include: alfalfa, amaranth grain, buckwheat, canola, Extra Long Staple (ELS) cotton, crambe (colewort), einkorn, emmer, flax, guar, hemp, indigo, industrial rice, kenaf, khorasan, millet, mustard, oats, peanuts, quinoa, rapeseed, rice, sweet rice, wild rice, rye, safflower, sesame, speltz, sugar beets, sugarcane, teff, and triticale.
  • Sales Commodities: Sales commodities eligible for CFAP 2 include specialty crops, aquaculture, nursery crops and floriculture, and other commodities not included in the price trigger and flat-rate payment categories. Sales commodities eligible for CFAP 2 are outlined below.
    • Aquaculture
    • Dairy (goat's milk)
    • Floriculture and Nursery Crops
    • Specialty Crops
    • Specialty Livestock
    • Tobacco
    • Wool

For more information on eligible commodities, see https://www.farmers.gov/cfap/commodities.

CFAP 2 will provide eligible producers with financial assistance that gives them the ability to absorb increased marketing costs associated with the COVID-19 outbreak. In accordance with 15 U.S.C. 714b, the Secretary is using funds of the Commodity Credit Corporation (CCC) to assist producers with the purchase of materials and facilities required in connection with the production and marketing of agricultural commodities, These authorities will be used to partially compensate producers for on-going market disruptions and assist with the transition to a more orderly marketing system by enabling them to:

  • Purchase materials and facilities required in connection with the production and marketing of agricultural commodities;
  • Remove or dispose of surplus agricultural commodities; and
  • Develop new and additional markets, marketing facilities, and uses for the commodities.

GrantWatch ID#:

GrantWatch ID#: 192431

Estimated Total Program Funding:

$14,000,000,000

Estimated Size of Grant:

The total amount of CFAP 2 payments made to a legal entity – such as to a corporation, limited liability corporation, limited partnership, trust, or estate – is $250,000 except if:
- Two different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $500,000.
- Three different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, -or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $750,000.

Additional Eligibility Criteria:

Eligible Producers:
- Any individual or legal entity who shares in the risk of producing a commodity may apply for CFAP 2.
- Producers must be in the business of farming at the time of submitting their application to be eligible.
- Contract growers who do not share in the price risk of production are ineligible.
- Producers can apply for assistance for only commercially produced commodities.
- To be eligible for payments, a person or legal entity must have an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018. However, if 75 percent of their adjusted gross income comes from farming, ranching, or forestry-related activities, the AGI limit of $900,000 does not apply and the person or legal entity is eligible to receive CFAP 2 payments up to the applicable payment limitation.

Persons and legal entities also must:
- Comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions; and
-Not have a controlled substance violation.

Additionally:
- If a person is not a US Citizen or Resident Alien (possessing an I-551 “Green Card”), then that person must provide a significant contribution of capital, land, and active personal labor to be eligible for CFAP 2.
- If a legal entity has more than 10 percent ownership held by persons who are not a US Citizen or Resident Alien, then that entity is eligible for payment only if each foreign person in the entity makes a significant contribution of labor to the farming operation. If the foreign person(s) does not make a significant contribution of active personal labor to the farming operation, the legal entity’s payment is reduced by the pro-rata ownership interest held by the foreign person(s).

Commodities not eligible for CFAP 2 include:
- Hay, except for alfalfa, and crops intended for grazing.
- All equine, animals raised for breeding stock, companion or comfort animals, pets, and animals raised for hunting or game purposes.
- Birdsfoot and trefoil, clover, cover crop, fallow, forage soybeans, forage sorghum, gardens (commercial and home), grass, kochia (prostrata), lespedeza, milkweed, mixed forage, pelts (excluding mink), perennial peanuts, pollinators, -sunn hemp, vetch, and seed of ineligible crops.

Pre-proposal Conference:

A CFAP 2 Producer Webinar is scheduled for September 24 at 3:00 PM EDT.
To register: https://globalmeetwebinar.webcasts.com/starthere.jsp?ei=1372084&tp_key=8efafcdd45

Pre-Application Information:

USDA’s Farm Service Agency will accept CFAP 2 applications from September 21 through December 11, 2020.

USDA’s Farm Service Agency offers multiple options for producers to apply for CFAP 2. Those include:
- Apply Online
- Manually Complete Applications
- Fill Application with Paymnet Calculator
- USDA Service Center Completes Application

For more information on how to apply, see https://www.farmers.gov/cfap/apply.

Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in to learn more.
FAQs: https://www.farmers.gov/cfap/faq
Press Release: https://www.usda.gov/media/press-releases/2020/09/18/usda-provide-additional-direct-assistance-farmers-and-ranchers
Federal Register Listing: https://www.federalregister.gov/documents/2020/09/22/2020-20844/coronavirus-food-assistance-program

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

CFAP 2 Application Portal: https://apps.fsa.usda.gov/cfap2/index.jsp

Please call the FSA office at your local USDA Service Center to schedule an appointment if you’d like assistance or have questions about applying for CFAP 2. Please see the service center locator at the bottom of the URL for Full Text.

A call center is available for producers who would like additional one-on-one support with the CFAP 2 application process. Please call 877-508-8364 to speak directly with a USDA employee ready to offer assistance.

For further information, contact:
William L. Beam
telephone: (202) 720-3175
email: Bill.Beam@usda.gov

URL for Full Text (RFP):

Geographic Focus:

USA: Alabama;   Alaska;   Arizona;   Arkansas;   California;   Colorado;   Connecticut;   Delaware;   Florida;   Georgia;   Hawaii;   Idaho;   Illinois;   Indiana;   Iowa;   Kansas;   Kentucky;   Louisiana;   Maine;   Maryland;   Massachusetts;   Michigan;   Minnesota;   Mississippi;   Missouri;   Montana;   Nebraska;   Nevada;   New Hampshire;   New Jersey;   New Mexico;   New York City;   New York;   North Carolina;   North Dakota;   Ohio;   Oklahoma;   Oregon;   Pennsylvania;   Rhode Island;   South Carolina;   South Dakota;   Tennessee;   Texas;   Utah;   Vermont;   Virginia;   Washington, DC;   Washington;   West Virginia;   Wisconsin;   Wyoming

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