Commissioner of Agriculture and Commerce Andy Gipson applauds the Trump administration and the U.S. Department of Agriculture on the Coronavirus Food Assistance Program (CFAP), which provides direct payments to farmers and ranchers whose business has been significantly damaged by COVID-19.
“I encourage all of our farmers across the state to take advantage of this unique opportunity,” said Commissioner Gipson. “This program will provide up to $16 billion in direct payments to producers impacted by COVID-19 and is available to livestock, dairy, specialty crop and non-specialty crop producers.”
In order to be eligible for a payment, a producer must have suffered a 5-percent-or-greater price loss over a specified time resulting from the COVID-19 outbreak or face additional significant marketing costs for inventories. Additionally, producers will have to certify that they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent 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. 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.
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.
The application process for payments will begin on May 26. For a complete list of eligible commodities, payment rates and application submissions, producers should contact their local Farm Service Agency office. For more information regarding CFAP, visit www.farmers.gov/cfap.