Farm & Ranch - May 2020




MAY 2020

USDA announces details of assistance in Coronavirus Food Assistance Program Telegraph staff reports payment rate per head.

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lower demand, surplus produc- tion and disruptions to shipping patterns and the orderly market- ing of commodities. Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appro- priated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-Janu- ary 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but sub- sequently spoiled due to loss of marketing channels. The sec- ond funding source uses the Commodity Credit Corporation Charter Act to compensate pro- ducers for $6.5 billion in losses due to on-going market disrup- tions. Non-specialty crops and wool Non-specialty crops eligi- ble for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soy- beans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also el- igible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50% of a producer’s 2019 total production or the 2019 in- ventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates. Livestock Livestock eligible for CFAP in- clude cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of live- stock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the

WASHINGTON — The federal government is set to provide up to $16 billion in direct payments to deliver relief to farmers and ranchers coping with the coro- navirus pandemic. U.S. Secretary of Agriculture Sonny Perdue announced the details of the Coronavirus Food Assistance Program this week in a press release. In addition to this direct sup- port to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distrib- utors, whose workforces have been significantly impacted by the closure of many restaurants, hotels and other food service en- tities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need. “America’s farming commu- nity is facing an unprecedented situation as our nation tack- les the coronavirus. President Trump has authorized USDA to ensure our patriotic farm- ers, ranchers, and producers are supported and we are mov- ing quickly to open applications to get payments out the door and into the pockets of farmers,” Perdue said. “These payments will help keep farmers afloat while market demand returns as our nation reopens and re- covers. America’s farmers are resilient and will get through this challenge just like they al- ways do with faith, hard work, and determination.” Beginning Tuesday, the U.S. Department of Agriculture, through the Farm Service Agency, will be accepting ap- plications from agricultural producers who have suffered losses. Background CFAP provides vital financial assistance to producers of agri- cultural commodities who have suffered a five-percent-or-great- er price decline due to COVID-19 and face additional significant marketing costs as a result of

Dairy For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020 multi- plied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter. 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 produc- tion shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature prod- uct 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, lem- ons, iceberg lettuce, spinach, squash, strawberries and toma- toes. A full list of eligible crops can be found on cfap. Additional crops may be deemed eligible at a later date. Eligibility There is a payment limita- tion of $250,000 per person or entity for all commodities com- bined. Applicants who are corporations, limited liability companies or limited partner- ships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75% or more of their in- come is derived from farming, ranching or forestry-related ac- tivities. Producers must also be in compliance with Highly Erodible Land and Wetland Please see USDA, Page F8

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