Assistance Program (CFAP): What Producers Need to Know CFAP - PowerPoint PPT Presentation

Coronavirus Food Assistance Program (CFAP): What Producers Need to Know

CFAP General Information

CFAP Authority • Created through the Coronavirus Aid, Relief, and Economic Stability Act (CARES Act) • CFAP provides direct assistance to agricultural producers impacted by the effects of the COVID-19 outbreak • $16 billion available for assistance nationwide CFAP 3

CFAP Funding Two Funding Sources: • CARES Act provides • $ 9.5 Billion • CCC Charter Act provides • $ 6.5 billion CFAP 4

Sign-up Period • Sign-up open for CFAP through August 28, 2020 • Producers must submit all eligibility forms within 60 days of signed application • Producers apply individually to their local office CFAP 5

Funding Availability To ensure the availability of funding throughout the application period for all eligible producers who apply, producers will receive 80% of their maximum total payment upon approval of the application. The remaining portion of the payment will be paid at a later time as funds remain available. CFAP 6

What is Eligible? • Eligible commodities include: • Non-Specialty Crops and Wool – in Nebraska, this includes corn and soybeans, as well as sorghum, certain types of wheat, oats, sunflowers, canola, millet • Livestock - cattle, hogs, lambs and yearlings • Dairy – based on a producer’s certification of milk production for the first quarter of 2020 • Specialty Crops – Broad list, many of which are crops not grown large scale in Nebraska, but those who do grow specialty crops should review the Fact Sheet (apples, sweet corn) CFAP 7

What is NOT Eligible? • Some types of wheat, alfalfa, eggs/layers and sheep over 2 years of age, among others • USDA is soliciting information to identify additional commodities, so if your commodity is ineligible, there is an opportunity to provide information to the national office – details available on the farmers.gov/cfap website (scroll down on the front page); submit information by June 22, 2020. CFAP 8

What is Eligible? NEW TERM: SUBJECT TO PRICE RISK Any production, sales, and/or inventory that is not subject to an agreed-upon price in the future through: • Forward contract • Agreement • Similar binding document CFAP 9

Other Requirements • Conservation Compliance for 2020 is a requirement • Must meet Adjusted Gross Income limitation of $900,000 unless at least 75% or more of income is derived from farming/ranching • Uses years 2016, 2017 and 2018 CFAP 10

Payment Limitations Apply • There is a payment limitation of $250,000 per person for all commodities combined CFAP 11

Payment Limitations Apply Optional Payment Limitation Increase for applicants who are Corporations, LLC’s and LP’s: Increase to either: • $500,000; or • $750,000 Based on the number of members, partners or stockholders contributing 400 hours or more of active personal labor and active personal management, or combination thereof. CFAP 12

CFAP Application and Other Forms

AD-3114 CFAP Application • One application per producer • This is a Producer Certification program • FSA is not taking your supporting documents upon application, however producers should retain their documentation for three years in the event it is requested down the road for review. • Completed AD-3114 can be submitted to any USDA Service Center CFAP 14

Other Forms In addition to the CFAP application, we may need: • CCC-902 , Farm Operating Plan for Payment Eligibility • CCC-901, Member Information for Legal Entities, if applicable • CCC-941, Average Adjusted Gross Income (AGI) Certification • CCC-942, Certification of Income Farming, Ranching, and Forestry Operations”, optional • AD-1026, HELC & WC Certification **New to FSA Customers: You don’t need a farm number for this program, but the forms above are necessary. Your FSA office can assist you with these and other required information. Call ahead to understand all the information you will need for a successful application. CFAP 15

AD-3114 CFAP Application Page 1 CFAP 16

AD-3114 CFAP Application Page 2 CFAP 17

Non-Specialty Crops & Wool

What Are the Eligible Commodities?

Eligible Commodities • Malting Barley • Durum Wheat • Canola • Hard Red Spring Wheat • Corn • Wool • Upland Cotton • Millet • Oats • Sorghum • Soybeans • Sunflowers CFAP 20

Eligible Commodities (continued) Eligible Types and Intended Uses Note: Crops intended for grazing are ineligible for CFAP Note: Seed corn, popcorn, forage sorghum, corn silage are eligible CFAP 21

Eligible Commodities (continued) Conversion Factors To convert from tons of silage to bushels of grain, multiply tonnage by the conversion factor: Corn - 7.94 X tons For other conversion factors, contact your County Office. CFAP 22

Eligible Commodities (continued) Popcorn To convert popcorn to bushels of corn: 1) Use yield of other commercial corn on the same farm (required, if available) and multiple the yield X popcorn acres 2) If no commercial corn yield available, divide the popcorn yield (LBs) by 29.7 and multiply it by popcorn acres For other conversion factors, contact your County Office. CFAP 23

Eligible Commodities (continued) Hybrid Seed Corn To convert hybrid seed corn to bushels of commercial corn: (Producer has the option to choose one of the following methods; same method must be used for all hybrid seed corn on farm) 1) Use the yield from the commercial corn grown on same farm 2) Use the commercial equivalent corn yield in the hybrid seed corn agreement (must be based on harvested commercial production) NTE 120% of the county average yield (Contact your County Office for the county average yield or if neither of these methods apply to your operation.) 24

How Were Eligible Commodities Determined?

Determining Commodities 5% decline in futures prices between weeks of: • January 13-17, 2020, and • April 6-9, 2020 CFAP 26

What Does the Producer Have to Furnish?

Producer Input AD-3114 – Part D Non-Specialty Crops and Wool CFAP 28

Producer Input (continued) AD-3114 – Part D • Item 16 “2019 Production Not Sold (as of Jan 15, 2020) ” Production entered must be Subject to Price Risk CFAP 29

Producer Input (continued) AD-3114 – Part D Item 16 Subject to Price Risk – NEW INFORMATION CFAP 30

Producer Input (continued) AD-3114 – Part D • Item 16 Production appraised from failed acres is ineligible for CFAP. CFAP 31

Non-Specialty Crops & Wool Payments

Payment Rates Commodity Unit of CARES Act CCC Measure Payment Rate Payment Rate Malting Barley BU $0.34 $0.37 Canola LB $0.01 $0.01 Corn BU $0.32 $0.35 Upland Cotton LB $0.09 $0.10 Millet BU $0.31 $0.34 Oats BU $0.15 $0.17 CFAP 33

Payment Rates (Continued) Commodity Unit of CARES Act CCC Measure Payment Rate Payment Rate Sorghum BU $0.30 $0.32 Soybeans BU $0.45 $0.50 Sunflowers LB $0.02 $0.02 Durum Wheat BU $0.19 $0.20 HRS Wheat BU $0.18 $0.20 Wool (graded, clean basis) LB $0.71 $0.78 Wool (non-graded, greasy LB $0.36 $0.39 basis) CFAP 34

Payment Formula CARES Act Payment Formula: “2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CARES Act rate. CFAP 35

Payment Formula CCC Charter Act Payment Formula: “2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CCC rate. CFAP 36

Payment Formula Total Payment Sum of CARES Act and CCC Charter Act payment CFAP 37

Payment Example AD-3114 – Part D 13. 14. 15. 16. Commodity Unit of Measure 2019 Total 2019 Production Production Not Sold (as of Jan 15, 2020) Soybeans Bushel 6500.00 1500.00 CFAP 38

Payment Example (continued) Element Instruction Data Taken from Item 16 – AD- 2019 Production Not Sold 1,500.00 bushels (as of Jan 15, 2020) 3114 Taken from Item 15 – AD- 2019 Total Production 3,250.00 bushels multiplied by 50% 3114 Eligible Production Smaller of 1,500.00 or 1,500.00 bushels 3,250.00 CARE Act Payment (50% multiplied by 1,500.00) $337.50 multiplied by CARE Act Payment Rate (750.00 multiplied by $0.45) CCC Funds Payment (50% multiplied by 1,500.00) $375.00 multiplied by CCC Payment Rate (750.00 multiplied by $0.50) Gross CFAP Payment for $712.50 Non-specialty/Wool CFAP 39

Livestock

Eligible Producer A person or legal entity who shares in the risk of producing livestock and who is entitled to a share in the livestock available for marketing or would have shared had livestock been produced and marketed. CFAP 41

Eligible Producer A contract grower who does not own the livestock will be considered a producer if the contract allows the grower to have risk in the livestock. Livestock owners and contract growers who are at risk and have a share of the livestock available for marketing or would have a share had the livestock been marketed are eligible livestock producers. CFAP 42