On May 21, 2020, the U.S. Department of Agriculture (USDA) implemented the Coronavirus Food Assistance Program (CFAP), which provides assistance to agricultural producers impacted by the effects of the COVID-19 outbreak.
The CFAP will provide up to $16 billion in direct payments to farmers and ranchers impacted by the COVID-19 pandemic, with a payment limitation of $250,000 per person or entity for all commodities combined. The payments will be based on losses. For producers of specialty crops (including, but not limited to, almonds, pecans and walnuts):
- For reductions of 5% or more in sales price between January 15 and April 15, 2020, payments will be based on the producer's sales (volume) during that timeframe multiplied by a pre-specified payment rate calculated as 80% of the given crop's mid-January to mid-April price change.
- For shipments that left the farm by April 15, 2020, and spoiled due to loss of marketing channels, payments will be based on the volume of shipped, spoiled crops multiplied by a pre-specified payment rate expected to represent 30% of the crop's sales value.
- For shipments that have not left the farm or mature crops that were unharvested between January 15 and April 15, 2020, and which have not been and will not be sold, payments will be based on the volume of unharvested and/or unshipped crops multiplied by a pre-specified payment rate expected to represent 5.875% of the crop's value.
Federal Register Vol. 85, No. 99. Thursday, May 21, 2020. Pages 30825-30835
If there are commodities that are not already identified with payment rates in the CFAP regulation for inclusion in CFAP, the USDA is requesting input. Comments on additional commodities can be submitted by June 22, 2020.
Federal Register Vol. 85, No. 100. Friday, May 22, 2020. Pages 31062-31065