CFAP Aid Payment Rules: What Pork Producers Need to Know

USDA logo, field and money ( MGN Online )

President Donald Trump and USDA released the rules for direct payments under the Coronavirus Food Aid Program (CFAP) at the White House Tuesday. Enrollment will start May 26 with initial payments to follow the week after. CFAP and Commodity Credit Corporation payments will total $45 per pig (under 120 pounds) and $35 per hog (over 120 pounds).

The rule announced Tuesday eliminates the $125,000 per commodity limit but keeps the $250,000 per recipient limit on payments. Corporations with more than one eligible producer stakeholder are eligible to receive up to $750,000 in payments ($250,000 per individual). 

For example, if an incorporated farm has two eligible stakeholders, they could receive up to $500,000 in payments. But if they have four eligible stakeholders, they will only receive $750,000.

According to USDA, 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 comply with Highly Erodible Land and Wetland Conservation provisions. 

For cattle, hog and pig, and lamb and yearling producers, payments will be made using CARES Act funds by multiplying a payment rate per head—specified by species and class—by the volume of sales occurring between Jan. 15 and April 15, 2020, by the applicable payment rate. 

CCC funds will be used to make a payment to the producer by multiplying a payment rate per head—denoted by species—by the highest inventory number between April 16 and May 14, 2020.

“America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary of Agriculture Sonny Perdue in a release. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

What should pork producers do now?
Your local FSA staff will assist you in applying for the program at local USDA Service Centers. Be prepared to provide the following information:

-Personal, including your Tax Identification Number
-Farming Operating Structure
-Adjusted Gross Income to ensure eligibility
-Direct deposit to enable payment processing

The following forms will be needed for CFAP. If you are an existing customer, this information is likely on file at your local Service Center.

•    CCC-901 (Also Available in Spanish) – Identifies members of a farm or ranch that is a legal entity. Member Information will be completed by legal entities and joint operations to collect the following: member names, addresses, and Tax Identification Numbers; and citizenship status.
•    CCC-941 (Also Available in Spanish) – Reports your average adjusted gross income for programs where income restrictions apply. 
•    CCC-942 – If applicable, this certification reports income from farming, ranching, and forestry, for those exceeding the adjusted gross income limitation. 
•    AD-1026 (Also Available in Spanish) – Ensures compliance with highly erodible land conservation and wetland conservation. 
•    AD-2047 – Provides basic customer contact information. 
•    SF-3881 – Collects your banking information to allow USDA to make payments to you via direct deposit. 
USDA plans to begin issuing payments the first week of June.

Related articles:

CFAP Signup Starts Next Week

Must-Have Information to Apply for COVID Aid Payments

Perdue Announces $19 Billion Coronavirus Food Assistance Program