U.S. Secretary of Agriculture Sonny Perdue announced the USDA Farm Service Agency (FSA) has already approved more than $545 million in payments to producers who have applied for the Coronavirus Food Assistance Program. FSA began taking applications May 26, and the agency has received over 86,000 applications for this important relief program.
“The coronavirus has hurt America’s farmers, ranchers, and producers, and these payments directed by President Trump will help this critical industry weather the current pandemic so they can continue to plant and harvest a safe, nutritious, and affordable crop for the American people,” said Secretary Perdue. “We have tools and resources available to help producers understand the program and enable them to work with Farm Service Agency staff to complete applications as smoothly and efficiently as possible and get payments into the pockets of our patriotic farmers.”
In the first six days of the application period, FSA has already made payments to more than 35,000 producers. Out of the gate, the top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska, and South Dakota. USDA has released data on application progress and program payments and will release further updates each Monday at 2:00pm ET. The report can be viewed at farmers.gov/cfap.
FSA will accept applications through August 28, 2020. Through CFAP, USDA is making available $16 billion in financial assistance to producers of agricultural commodities who have suffered a five-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.
In order to do this, 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 nationwide, as funds remain available.