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USDA to Reopen CFAP2: Additional $6 Billion in Aid

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Michael C. Zahrt and Cody A. Mott
March 31, 2021

The United States Department of Agriculture (USDA) has announced it will reopen sign-ups for CFAP 2 beginning on April 5, 2021. CFAP 2, the second iteration of the Coronavirus Food Assistance Program, has provided over $13.2 billion in assistance to over 875,000 applicants – including $340 million to Michigan producers – to offset some of the market disruptions caused by COVID-19.

The current expansion will infuse an additional $6 billion in aid to fund new programs and modify existing proposals. Eligible producers will have until June 4, 2021 to sign-up for payments through their Farm Service Agency’s local county office.

Expanded Eligibility

The expanded eligibility is intended to reach a broader set of producers, including previously underserved producers and small to medium operations. In addition to those producers currently eligible in CFAP 2, the expanded program includes assistance for the following:

  • Dairy farmers through the Dairy Donation Program or other means.
  • Euthanized livestock and poultry.
  • Biofuels.
  • Specialty crops; beginning farmers; and local, urban, and organic farms.
  • Costs for organic certification or to continue or add conservation activities.
  • Other possible expansion and corrections to CFAP such as to support dairy or other livestock producers.
  • Timber harvesting and hauling.
  • Costs for personal protective equipment and other protective measures for food and farm workers and specialty crops and seafood processors and distributors.
  • Improving the resilience of the food supply chain.
  • Costs for developing infrastructure to support donation and distribution of perishable commodities, including food donation and distribution through farm-to-table, restaurants, or other community organizations.
  • Reducing farm waste.

More information on the original eligibility requirements for CFAP 2 can be found here.

Old Programs Get New Money

Roughly $500 million is earmarked towards existing programs and services, with the goal of expediting assistance. This includes:

  • $100 million for the Specialty Crop Block Grant Program.
  • $100 million for the Local Agricultural Marketing Program.
  • $80 million towards Economic Adjustment Assistance for Textile Mills program for domestic users of upland and extra-long stable cotton.
  • $75 million for Farmers Opportunities Training and Outreach programs.
  • $75 million for the Gus Schumacher Nutrition Incentive Program.
  • $28 million for the National Institute of Food and Agriculture’s stress assistance programs.
  • $20 million for the Animal and Plant Health Inspection Services.

Formula Payments for Existing Programs

As part of the Consolidated Appropriations Act, the Farm Service Agency is making automatic payments to prior recipients of assistance under CFAP 1 and CFAP 2.

CFAP 1 payment rates for cattle will be increased and automatically paid to those eligible producers who have previously applied and been approved.

Producers of flat-rate and price-trigger crops under CFAP 2 will receive additional assistance of $20 per acre beginning in April. The payments will be issued automatically to previous CFAP 2 recipients and eligible producers do not need to re-apply.

If you have any questions about this article or need help applying for CFAP 2, please contact your Foster Swift attorney or a member of our Agri-Business team.