Category: Legislative

  • USDA Issues First Coronavirus Food Assistance Program Payments

    United States Department of Agriculture

    Perdue

    (Washington, D.C., June 4, 2020) – U.S. Secretary of Agriculture Sonny Perdue today 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 p.m. 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 5%-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% 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.

    Getting Help from FSA

    New customers seeking one-on-one support with the CFAP application process can call 877-508-8364 to speak directly with a USDA employee ready to offer general assistance. This is a recommended first step before a producer engages the team at the FSA county office at their local USDA Service Center.

    Producers can download the CFAP application and other eligibility forms from farmers.gov/cfap. Also, on that webpage, producers can find a payment calculator to help producers identify sales and inventory records needed to apply and calculate potential payments. Producers self-certify their records when applying for CFAP and that documentation is not submitted with the application. However, producers may be asked for their documentation to support the certification of eligible commodities, so producers should retain the information used to complete their application.

    Those who use the online calculator tool will be able to print a pre-filled CFAP application, sign it, and submit it to your local FSA office either electronically or via hand delivery through an office drop box. Please contact your local office to determine the preferred delivery method for your local office. Team members at FSA county offices will be able to answer detailed questions and help producers apply quickly and efficiently through phone and online tools. Find contact information for your local office at farmers.gov/cfap.

    Policy Clarifications

    FSA has been working with stakeholder groups to provide further clarification to producers on the CFAP program. For example, the agency has published a matrix of common marketing contracts that impact eligibility for non-specialty crops and has provided a table that crosswalks common livestock terms to CFAP cattle categories. Updated information can be found in the frequently asked questions section of the CFAP website.

    More Information

    To find the latest information on CFAP, visit farmers.gov/cfap or call 877-508-8364.

    USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

  • Sneak Peek: June 2020 VSCNews Magazine

    By Ashley Robinson

    Policies and regulations can impact a farmer’s ability to make a living. The 2020 Florida, Georgia and Alabama legislative sessions have officially wrapped up, and the June issue of VSCNews magazine will tell readers how agriculture fared in each state.

    Adam Basford, director of state legislative affairs for Florida Farm Bureau, discusses the successes and progress that has been made this legislative session.

    Mary Ann Hooks, director of governmental affairs with the University of Florida Institute of Food and Agricultural Sciences (UF/IFAS), gives an update on how the UF/IFAS budget fared this year.

    Georgia Lawmakers pressed the pause button on the 2020 legislative session due to COVID-19.

    Georgia Agribusiness Council President Will Bentley discusses the Ag bills that were still in play when the session paused.

    Furthermore, Ashley Robinson, AgNet Media communications intern, dives deeper into the Alabama session based on an interview with Leigha Cauthen, executive director of the Alabama Agribusiness Council.

    Farmworker safety is also highlighted in the June issue. Amy Wolfe, president and CEO of AgSafe, discusses precautions that farm owners and managers should implement to ensure the safety of their farmworkers as the industry navigates through the COVID-19 pandemic. However, Wolfe warns not to trade out one risk for another. On top of additional COVID-19 precautions, growers shouldn’t overlook other tried-and-true general farm safety measures.

    Hemp interest is still strong in the Southeast. Clint Thompson, AgNet Media multimedia journalist, looks at the impacts of COVID-19 on the hemp industry. Thompson also addresses the rules and regulations for producing hemp in Florida, Georgia and Alabama.

    Lastly, Jaya Joshi, a postdoctoral associate at UF, discusses the future of meeting the demand for meat with plant proteins. According to Joshi, there is rising interest among consumers who want to eat less meat and dairy and more fruits and vegetables without compromising their protein intake. Plant-based protein may be the answer for these individuals.

    To receive future issues of VSCNews magazine, visit click here.

  • Commissioner Fried Advises Farmers to Prepare CFAP Applications

    Tallahassee, Fla. — Following Tuesday’s announcement by the U.S. Department of Agriculture on the Coronavirus Food Assistance Program (CFAP), which will provide $16 billion in direct payments to support American farmers impacted by COVID-19, Agriculture Commissioner Nikki Fried is advising Florida farmers and ranchers to fill out forms in advance of applications being accepted starting May 26 through county Farm Service Agency (FSA) offices. 

    commissioner
    Nikki Fried
    Florida Agriculture Commissioner

    “As our nation’s farmers suffer monumental losses due to COVID-19, this CFAP assistance is a crucial first step towards helping agriculture producers recover from this pandemic,” said Commissioner Nikki Fried in a press release. “But making sure Florida’s farmers get the assistance they need will require more federal support — many of our seasonal crops, nursery operations, and non-marine aquaculture were not included in this initial round of assistance, and the direct payment limits will cover a fraction of the losses they’ve suffered. I will continue working with the USDA and Congress to ensure the needs of our producers are communicated and the magnitude of their losses are understood. Because these funds are available on a limited basis to all of our nation’s farmers, I’m urging Florida agricultural producers to immediately gather information and begin filling out the necessary paperwork to apply.”

    Details: CFAP will provide up to $16 billion in direct payments to agricultural producers who have suffered a five percent or greater price decline due to COVID-19 and face additional significant marketing costs. From May 26 through August 28, producers can submit applications through their county FSA office. Because of the limited nature of the funds, Commissioner Fried is urging producers to begin preparing information and documentation required to submit an application.

    Eligibility: To be eligible, a person or legal entity must have an average adjusted gross income of less than $900,000 for tax years 2015, 2016, and 2017. If 75 percent of their adjusted gross income comes from farming, ranching, or forestry, the limit of $900,000 does not apply. Additional eligibility requirements are listed at farmers.gov/cfap.

    Payment Limitations: Payments are subject to a per person and legal entity payment limit of $250,000. Corporations, limited liability companies, and limited partnerships (corporate entities) may receive up to $750,000 based on the number of shareholders (not to exceed three) who contribute at least 400 hours of active person management or personal active labor. For specific limits on corporate entity payments, click here.

    Payment Structure: To ensure availability of funding through the application period, producers will receive 80% of their maximum total payment upon application approval. The remaining portion, not to exceed the limit, will be paid at a later date as funds remain available.

    How to Prepare: While the application process does not open until May 26, producers should start gathering and understanding their recent sales and inventory. Local FSA staff will work with producers to apply for the program. Forms will ask for the following:

    • Name and address 
    • Personal information, including your Tax Identification Number 
    • Farm operating structure 
    • Adjusted Gross Income compliance certification to ensure eligibility 
    • Direct deposit to enable payment processing

    The following forms will be needed to complete a CFAP application:

    • CCC-901[ application/pdf ]: Identifies members of a farm or ranch that is a legal entity. Member Information will be completed by legal entities and joint operations
    • CCC-941[ application/pdf ]: Reports average adjusted gross income for programs where income restrictions apply
    • CCC-942[ application/pdf ]: If applicable, this certification reports income from farming, ranching, and forestry for those exceeding the adjusted gross income limitation
    • AD-1026[ application/pdf ]: Ensures a conservation plan is in place before lands with highly erodible soils are farmed, identified wetland areas are protected, and conservation compliance provisions are met
    • AD-2047[ application/pdf ]: Provides basic customer contact information
    • SF-3881[ application/pdf ]: Collects banking information so payments can be made via direct deposit

    Existing customers will likely have this information on file at the local Service Center. In addition to the application form, FSA staff will work with producers to complete portions of the CCC-902 Farm Operating Plan form if necessary. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

    How to Apply Once Signup Begins: USDA Service Centers are open for business by phone appointment only. Once the application period opens, producers should call their local FSA office to schedule an appointment. FSA staff at local USDA Service Centers will work with producers to file applications. USDA anticipates releasing payments 7-10 days after applications are received.

    Specialty Crops

    For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.

  • More Questions Than Answers With Respect to CFAP

    By Clint Thompson

    The Coronavirus Food Assistance Program (CFAP) has brought more questions than answers with respect to financial aid for growers in response to the ongoing coronavirus pandemic.

    The $19 billion program includes $16 billion in direct payments for farmers and ranchers. CFAP has payment restrictions of $125,000 per commodity and a total of $250,000 per applicant for all commodities. Growers and industry leaders hope that cap on payment restrictions gets removed.

    “For specialty crop growers, $125,000 is a drop in the bucket for most of their losses,” said Charles Hall, executive director of the Georgia Fruit and Vegetable Growers Association.

    Florida vegetable farmer Paul Allen, talked about the financial toll the pandemic had on him and his farming brethren.

    “The biggest thing right now is the government allocated per crop a cap of $125,000, which is nothing. We’re really working trying to get the USDA to see and understand the massive hit that Florida is taking and raise the direct payment caps,” Allen said. “What is fair is not always equal.

    “It costs 10 times to grow vegetable crops what it does regular commodity crops.”

    Pandemic Punishes Producers

    In a previous interview in early April, Allen said he left about 2 million pounds of green beans in the field and about 5 million pounds of cabbage. All due to the coronavirus pandemic that shut restaurants down and closed off a major supply chain to foodservice industries.

    Perdue

    According to an AgNet West story, a group of lawmakers, which included 28 members of the U.S. Senate and 126 members of the U.S. House of Representatives, issued a letter to President Donald Trump and USDA Secretary Sonny Perdue. They asked for the removal of payment caps from CFAP before the final program details are announced.  The letter points out that the payment restrictions would limit the effectiveness of the program. This is especially true for livestock, dairy and specialty crop producers.

    Another concern is how payments will be divided between losses sustained before and April 15. An 85% payout will be issued for losses sustained from January 1 to April 15 but only 30% after April 15.

    “Our concern was what’s the difference in a loss after April 15 and before April 15. After April 15, that grower has got the same loss as before April 15. Most of our growers’ losses will come after April 15,” Hall said. “We’ve been told that’s going to be fixed, too. I haven’t seen anything firm from the USDA on that.”

  • U.S. Congressman: A Fourth Relief Bill Will not Happen Fast

    By Clint Thompson

    Austin Scott

    United States Congressman Austin Scott (GA-08) believes if there is a fourth coronavirus relief bill to help people like farmers and aid agribusinesses, it will not happen fast.

    Scott, along with fellow Congressman Sanford Bishop (GA-02), spoke about the recently passed Coronavirus Aid Relief and Economic Security (CARES) Act and its different provisions. Due to circumstances regarding the health and well-being of members of Congress, passing another piece of legislation may have to wait.

    “There are 535 members of Congress. There are at least five that have tested positive for the coronavirus. There are several others that have been on quarantine because they’ve been exposed to it,” said Scott on April 3. “One of the questions is, at what point are you able to bring 535 people back in to work in close proximity and actually get something done? I think this last bill was unique in the way that it was passed. I don’t think it is possible to pass another bill with simply the Senate effectively drafting the bill and the House, including myself, voting yes by voice on the bill.”

    The Paycheck Protection Program (PPP) was an integral part of the $2 trillion CARES Act. It was designed to aid small businesses recover amid the ongoing coronavirus pandemic. However, it may not have enough funds to support the $350 billion allocated for the program. Congressman Buddy Carter (GA-01) believes additional funding will be ready if needed through a Phase 4 relief package. Scott reiterates his position that another stimulus package will still take some time to pass.

    “I would tell you, if there is a fourth relief bill, I think a couple of the areas that are going to have to be looked at. (No.) 1, from a timing standpoint, I think it would be more than 30 days from now before another bill passed. (No.) 2, at that stage, we will have a better indication of what the revenue impact is on state and local governments and on our healthcare providers,” Scott said.

  • Congressman Scott: Apply Today for Paycheck Protection Program

    By Clint Thompson

    The Paycheck Protection Program might be an option for farmers to consider, but Congressman Austin Scott implores those interested to apply today.

    Austin Scott

    The recently passed $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is intended to provide financial relief amid the coronavirus pandemic, includes $350 billion for the Paycheck Protection Program. It is designed to aid small businesses.

    “There are significant questions that remain out there about whether or not farmers can actually apply for and get relief from the Paycheck Protection Act. Here’s the best advice I can give you. You need to be talking with your lender and you need to look at the application. If you can answer those questions honestly, then you need to put an application in,” Scott said. “When I say put it in, I don’t mean you need to put it in tomorrow. I mean you need to put it in today.”

    Scott said that according to the Small Business Administration there is an estimated 30 million small businesses that are eligible for paycheck protection relief, which will provide eight weeks of financial assistance. Scott expects funds to run out quick.

    “My concern has been based on the $350 billion number that if you just divide that by the number of small businesses, my fear is that we’ve over-promised on what we’re going to be able to do on the paycheck protection, simply based on the $350 billion being divided by 30 million businesses. You come up with $11,600 per business. If only half of the people apply that’s $23,000 per business,” Scott said. “You’re talking about two months payroll plus rent and utilities. I think the money goes and I think it goes very quick. In fact, I do not believe there will be money left at the end of the day today.

    “The question comes, when does it get replenished? And not just if, but if it gets replenished and when would it get replenished? I think you’re talking about well over a month before any additional legislative action is taken.”