[Archived] Coronavirus Food Assistance Program 2 FAQ

Eligibility

Who is eligible to participate in the Coronavirus Food Assistance Program 2? test

Any individual or legal entity who shares in the risk of producing a commodity may apply for CFAP 2. Contract producers of eligible livestock and poultry may also apply for the program. With the exception of contract producers, all producers must be in the business of farming at the time of submitting their application to be eligible. Producers can apply for assistance for only commercially produced commodities.

Visit farmers.gov/cfap for additional eligibility information.

Are urban farmers and farmers who run community supported agriculture (CSA) operations eligible?

All farmers, including urban farmers and farmers who run CSAs, are eligible for CFAP 2 if they meet the eligibility requirements.

I don’t participate in any USDA programs. Can I apply for CFAP 2?

Yes. Participation in other USDA programs is not a prerequisite.

Should a marketing cooperative apply, or should each grower apply separately for CFAP 2?

Each grower should apply separately.

Is there an Adjusted Gross Income (AGI) limit to receive CFAP assistance?

Yes. To be eligible to receive payment, a person’s or legal entity’s AGI cannot exceed $900,000 (using the average for the 2016, 2017, and 2018 tax years). However, producers with AGI exceeding the limit may be eligible to receive payment if 75 percent or more of their total AGI comes from farming, ranching, or forestry-related activities.

Who must fill out forms to certify average AGI and Farm AGI?

Forms CCC-941 and, when applicable, CCC-942, are used for certifying average AGI and Farm AGI and are required to be filed by the applicant. The individual or a legal entity applying must provide information on all members, stockholders, or partners at or above the fourth level of ownership in the business structure. These forms are available at farmers.gov/cfap/apply.

Do the Farm Bill’s conservation compliance requirements apply to CFAP?

Producers participating in CFAP must be in compliance with the highly erodible land conservation and wetland conservation provisions at 7 CFR Part 12. Producers must agree, by certifying Form AD-1026, that they will not produce an agricultural commodity on highly erodible land without a conservation plan, plant an agricultural commodity on a converted wetland, or convert a wetland to make possible the production of an agricultural commodity. This form is available at farmers.gov/cfap/apply.

Is there a crop insurance or risk management requirement that must be met to qualify for CFAP?

There is no requirement to have crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program (NAP) to be eligible for participation.

Does participation in Small Business Administration (SBA) programs impact eligibility for CFAP?

Participation in SBA’s Paycheck Protection Program (PPP) or Economic Injury Disaster Loan program does not impact producer eligibility for CFAP. The PPP duplicate benefit provision does not have an impact on FSA farm programs or farm loan programs.

Eligible Commodities

What commodities and livestock are eligible for CFAP 2?

Eligible commodities for CFAP 2 include non-specialty crops, wool, livestock and specialty livestock (excluding breeding stock not raised under contract), livestock and poultry raised by contract producers, dairy, specialty crops, floriculture and nursery crops, aquaculture, broilers, eggs, pullets, turfgrass sod, tobacco, and grass seed. See a full list of eligible commodities at farmers.gov/cfap/commodities.

What commodities are not eligible for CFAP 2?

Commodities not eligible for CFAP 2 include:

• Hay, except for alfalfa, and crops intended for grazing. 
• All equine, breeding stock not raised by contract producers, companion or comfort animals, pets, and animals raised for hunting or game purposes.
• Birdsfoot and trefoil, clover, cover crop, fallow, forage soybeans, forage sorghum, gardens (commercial and home), grass, kochia (prostrata), lespedeza, milkweed, mixed forage, pelts (excluding mink), perennial peanuts, pollinators (bees, for example), sunn hemp, vetch, and seed of ineligible crops other than grass seed.

Are seed commodities eligible for CFAP 2?

Seed commodities other than grass seed are only eligible if the underlying commodity is eligible and at the underlying commodity payment category and rate. For example, seed potatoes and asparagus seed are covered under the sales approach while seed corn is a price trigger commodity. Clover seed is not eligible since the underlying commodity is not eligible.

On August 24, 2021, USDA announced that grass seed is an eligible commodity for CFAP 2.

If a producer sells eggs locally, are they eligible?

Producers who sell eggs locally are encouraged to apply. The FSA county committee will determine if the production of eggs is commercial. Because applications are subject to spot check, producers should also have verifiable sales and/or production records to substantiate their certifications on the application form.

If I participate in a marketing or seasonal pool to market my pecans, a sales-based commodity, are those sales eligible?

Yes, the sales-based commodity is eligible based on the sales received for your commodity in calendar year 2019, regardless of membership in a marketing pool or crop year from which the commodity was produced.

Are freshwater shrimp eligible?

Yes, provided the shrimp are propagated and maintained in a controlled environment.

Are alligators sold for food considered specialty livestock or aquaculture?

Alligators are not eligible as they are not aquaculture and are not an included as eligible other livestock.

What milk production is eligible for CFAP 2?

Any milk that was commercially marketed from April through December of 2020 is eligible for payment under CFAP 2. Production for September, October, November, and December will be based on the average production from April to August.

Are animals that have been depopulated because of the impact of COVID-19 on processing facilities included in CFAP 2?

Animals that are a part of a producer’s inventory on the date he/she chooses are eligible for a CFAP 2 payment.

The Consolidated Appropriations Act, 2021, allocated funding for USDA’s Pandemic Livestock Indemnity Program to provide assistance to producers for losses of livestock and poultry depopulated from March 1, 2020, through December 26, 2020, due to insufficient processing access, and for the cost of depopulation and disposal.  Visit farmers.gov/plip to learn more about this new program, which like CFAP is part of USDA’s Pandemic Assistance for Producers initiative. 

Are “replacement stock intended for breeding” cattle, hogs/pigs, sheep, and other livestock eligible?

Yes. All females that have not produced offspring and males who have not started breeding females are eligible for inclusion in inventory. Breeding stock not raised under contract are not eligible for CFAP 2. Culled breeding stock are also not eligible for CFAP 2. Certain breeding stock raised by contract producers are eligible for the program. Visit farmers.gov/cfap for additional eligibility information. 

What type of eggs are eligible under CFAP 2?

Shell, liquid, frozen, and dried eggs are eligible for CFAP 2 payments. Eggs of eligible poultry raised under contract are also eligible. Visit farmers.gov/cfap for additional eligibility information.

I grow tobacco on my farm. Will I receive a payment?

Tobacco is included under the sales approach. Payments for tobacco producers are now calculated using the producer’s eligible sales during calendar year 2018 or 2019 plus crop insurance indemnities and WHIP+ payments received for crop year 2018 or 2019, multiplied by the applicable payment rate.  For example, a producer’s 2018 or 2019 sales of tobacco and eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775. Learn more about payment calculations for tobacco at farmers.gov/cfap2/tobacco.

Are livestock and/or poultry raised by contract producers eligible?

Yes. USDA announced CFAP 2 payments for eligible contract producers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs on August 24, 2021. Ducks, geese, pheasants, and quail produced under contract are also eligible commodities, as well as breeding stock of eligible livestock and eggs of all eligible poultry types raised by contract producers.

Applying for CFAP

Q. When does the reopening of the CFAP 2 signup start and end?

FSA reopened CFAP 2 signup on April 5, 2021. FSA will accept CFAP 2 applications through October 12, 2021.

Do all producers need to apply through the Farm Service Agency?

Yes. Producers of CFAP 2 eligible commodities may apply on or after April 5, 2021, through the Farm Service Agency (FSA) office at their local USDA Service Center or online. Producers can locate their service center, download the application forms, and find additional information about applying at farmers.gov/cfap/apply or by calling 877-508-8364. CFAP 2 applications are due no later than October 12, 2021.

I applied for CFAP 2, but I also grow turfgrass sod or raise poultry under contract. Do I submit a new application or modify an existing one for payments on commodities that were not initially eligible for the program?

If you have an existing application, you can modify it by contacting your local USDA Service Center before the October 12, 2021 program deadline. Visit farmers.gov/cfap/apply to learn more about modifying your existing CFAP 2 application.

How can I prepare to apply for CFAP 2?

If you are a new customer to USDA, your local FSA staff will work with you to fill out the application for the program, and will ask for this type of information:

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

What documents do I need to submit with my application?

To complete the application for CFAP 2, producers will need to reference their production, sales, inventory, revenue, and other records. However, since CFAP 2 is a self-certification program, most documentation will not need to be submitted with the application. Contract producers must provide a copy of their contract. Because applications are subject to County Committee review and spot check, some producers will be required to provide documentation. Producers should retain the records and documentation they use to complete the application.

If a producer willfully makes and represents as true any verbal or written declaration, certification, statement, or verification that the producer knows or believes not to be true, in the course of either applying for or participating in CFAP 2, or both, the producer will be subject to prosecution under Federal criminal and civil fraud statutes.

Visit farmers.gov/cfap/apply to learn more.

My local USDA Service Center is not open for walk-in service. How do I apply for CFAP 2?

We are committed to delivering USDA services to America’s farmers and ranchers while taking safety measures in response to the pandemic. Some USDA offices are open to limited visitors by appointment only. Service Center staff also continue to work with agricultural producers via phone, email, and other digital tools. Please call the FSA office at your local USDA Service Center to schedule an appointment if you’d like assistance or have questions about applying for CFAP 2. 

A call center is available for producers who would like additional one-on-one support with the CFAP 2 application process. Please call 877-508-8364 to speak directly with a USDA employee ready to help. The call center can provide service to non-English speaking customers. Customers will select 1 for English and 2 for Spanish. For other languages, customers select 1 and indicate their language to the call center staff.

How do I apply for CFAP 2?

USDA’s Farm Service Agency will accept new or modified CFAP applications from eligible producers April 5, 2021 through October 12, 2021. 

Eligibility information related to your operation is detailed on farmers.gov/cfap by the specific commodity you grow or raise.

Producers who are modifying their applications should contact their local USDA Service Center for assistance. Producers who are filing new applications should contact their local USDA Service Center or call 877-508-8364 for one-on-one support. Additional information for those now eligible to apply for CFAP 2 or modify an existing application is available at farmers.gov/cfap/apply.

Are CFAP funds a loan that must be repaid? Is there a fee to apply?

No. CFAP is not a loan program and there is no cost to apply.

Producer Payments

I applied for CFAP 1 and received payments for my cattle. Do I need to do anything to receive the increased payment?

No, you do not need to file a new application. FSA is automatically issuing these payments; however, depending on how you filed your original application, you may be asked for additional information.

I did not apply for CFAP 1, but I raise cattle. Am I now eligible for the additional payment?

No, only producers with an approved CFAP 1 application for cattle will receive the additional payment.

I applied for CFAP 1 but did not receive an additional payment for swine as announced with CFAP Additional Assistance. Why?

As announced earlier this year, USDA evaluated past CFAP program assistance and determined previous payment methodologies using flat rates across all swine inventory were not targeted and did not reflect the variation in levels of losses between producers. As a result, the proposed assistance under the prior administration in providing a flat rate swine payment based on CFAP 1 inventories will not be pursued. Where there is flexibility, USDA will instead continue to target assistance based on gaps or disparities in previous assistance. Pork industry supported analysis reflects that pandemic disruptions had an impact to small hog producers who were burdened with a disproportionate share of the losses, especially those that sell on the spot market or negotiate prices. USDA has examined the difference between the negotiated prices for hogs and the 5 year average and documented a significant price drop during April through September 2020 due to the pandemic and confirmed this more severe pandemic impact. Later this fall, additional pandemic livestock assistance will be announced for small hog producers that use the spot market or negotiate prices.

Past USDA assistance to swine producers include both sales and inventory payments under CFAP 1, and inventory payments under CFAP 2. In addition, signup is ongoing for those producers whose animals were depopulated due to insufficient processing under the Pandemic Livestock Indemnity Program and for contract producers of swine under CFAP 2 to provide assistance for revenue losses.

More information on livestock pandemic assistance can be found at farmers.gov/pandemic assistance.  

I applied for CFAP 2 and received payments for my flat-rate and price-trigger crops. Do I need to do anything to receive the $20/acre payment?

No, FSA will automatically issue payments to eligible price trigger and flat-rate crop producers based on the eligible acres included on their CFAP 2 applications. Eligible producers do not need to submit a new CFAP 2 application form.

I did not apply for CFAP 2, but I raise row crops that fall under the price-trigger or flat-rate crop category. Am I now eligible and do I get the additional payment?

USDA re-opened CFAP 2 for all eligible CFAP 2 commodities beginning April 5, 2021. Producers who file new applications for price trigger and flat-rate crops during the re-opened application period will also receive the additional payment. Signup will close on October 12, 2021. Visit farmers.gov/cfap/apply for more information on how to apply.

I started farming in 2020 and grow a commodity that is part of the sales approach. I didn’t have any 2018 or 2019 sales. Can I participate in CFAP 2?

Yes, you can participate in CFAP 2. New producer payments will be based on 2020 actual sales as of the date of their application.

I grow a sales-based commodity and had higher production in 2018 than 2019. Can I use 2018 sales instead of 2019 for my payment calculation? 

Yes. On August 24, 2021, USDA announced an amendment to the CFAP 2 payment calculation for sales-based commodities to allow producers to substitute 2018 sales for 2019 sales. Previously only 2019 was used to approximate the amount producers of sales-based commodities would have expected to market in 2020. Giving producers the option to substitute 2018 sales for 2019 sales provides additional flexibility to producers who had reduced sales in 2019. 

Visit farmers.gov/cfap/apply for information on how to submit a new CFAP application or amending an existing application.

When are CFAP 2 payments expected to begin?

FSA county offices will process applications as they receive them beginning April 5, 2021. Program approval is handled at the local level and the timeline for this approval process, including required internal controls and data validation, varies from county to county. Payments are made shortly after applications are approved.

What are the payment limits for CFAP?

The total CFAP payment that a person or legal entity may receive, directly or indirectly through attribution of payments, is $250,000. CFAP 1 and 2 are separate programs, and payment limits are unique for each program. This limitation applies to the total amount of CFAP 1 or CFAP 2 payments made with respect to all eligible commodities and includes the additional payments.

The total amount of CFAP 1 or CFAP 2 payments made to a legal entity – such as to a corporation, limited liability corporation, limited partnership, trust, or estate – is $250,000 except if:

• two different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $500,000. 
• three different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $750,000.

Although the payment limitation is increased for the corporation, LLC, LP, trust, or estate, each members’ payment limitation (received directly or indirectly) remains subject to the $250,000 individual person payment limit.

These payment limit provisions are different from and separate from the payment limitations established by the 2018 Farm Bill.

Can our entity request an increase to our payment limitation now that these additional payments will be issued?

A CFAP applicant that is a corporation, limited liability corporation, limited partnership, trust, or estate qualifying for the CFAP 1 cattle additional payment or CFAP 2 row crop additional payment, or applying for CFAP 2 during the reopened signup, may seek an increase in the $250,000 payment limitation. An authorized representative of a legal entity should contact FSA staff at their local USDA Service Center to revise a previously filed CFAP 1 or CFAP 2 application.

Can CFAP payments be withheld to satisfy a debt?

No. Per the CFAP regulation, these payments will not be subject to administrative offset. This mean the payments will not be withheld to satisfy any USDA debts nor will they be offset by Treasury.

Are CFAP payments going to be counted as taxable income?

The Commodity Credit Corporation reports program payments to the Internal Revenue Service and program participants on a CCC-1099-G. This report is a service to help participating producers report taxable income. Please consult with the IRS or your tax preparer for any additional questions on how this income impacts your operation. 

Funding and Payment Calculations

I grow or raise a CFAP 2 sales-based commodity that suffered a loss covered by crop insurance indemnity, NAP, or WHIP+ in crop year 2018 or 2019. I applied for CFAP 2, and my payment calculation only included eligible sales. Can I revise my application to update how the payment is calculated?

Yes, producers of sales commodities can modify their applications to include crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments from crop year 2018 or 2019 in the calculation. This calculation adjustment is for specialty crops, aquaculture, tobacco, specialty livestock, nursery crops, and floriculture as detailed on farmers.gov/cfap. Because calculations were based on 2018 or 2019, this change to include crop insurance indemnities, NAP, and WHIP+ payments more accurately represents what a producer would have marketed in a normal year.

If you have an existing application that needs modification to account for an insurance indemnity, NAP payment, or WHIP+ payment in crop year 2018 or 2019, you can modify it by contacting your local USDA Service Center. The deadline to apply for CFAP 2 or modify an existing application is October 12, 2021. Visit farmers.gov/cfap/apply to learn more about modifying your existing CFAP 2 application.

What if I had crop insurance but applied for CFAP 2 without a 2020 actual production history (APH) for my price-trigger crops?

FSA used the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for producers who did not have an available APH approved yield. FSA originally used the ARC-CO benchmark yield multiplied by 85 percent to calculate payments. FSA is updating calculations for producers with crop insurance, using the ARC-CO benchmark yield multiplied by 100 percent. This impacts producers with crop insurance coverage who grow barley, corn, sorghum, soybeans, sunflowers, upland cotton, and wheat. This change provides improved support for producers with crop insurance when an APH approved yield was not available. Producers can modify an existing CFAP 2 application. The deadline for producers to submit a new or modified CFAP 2 application is October 12, 2021. Visit farmers.gov/cfap/apply to learn more about modifying your existing CFAP 2 application.

What commodities are included in the four different categories that USDA has established to assist producers impacted by COVID-19 and what are the payment rates?

Price trigger commodities and the rates are:

Commodity	Unit	Standard Crop Marketing Percentage**	Payment Rate ($/unit)
Barley	bu	63	$0.54
Corn	bu	40	$0.58
Cotton, Upland	lb	46	$0.08
Sorghum	bu	55	$0.56
Soybeans	bu	54	$0.58
Sunflowers	lb	44	$0.02
Wheat (all classes)	bu	73	$0.54

**Crop payment = reported 2020 planted acres times yield times standard crop marketing percentage times payment rate

The Consolidated Appropriations Act, 2021, authorized an additional payment of $20 per acre for price-trigger commodities as well. New CFAP 2 applicants will receive a payment based on the payment rate above, plus the additional payment.

Livestock	Unit	Payment Rate ($/unit)
Broilers	head	$1.01**
Beef Cattle	head	$55.00
Hogs and Pigs	head	$23.00
Lambs and Sheep	head	$27.00

Livestock payment = unit times payment rate

** Payment does not cover the entire year.

Commodity	Unit	Payment Rate ($/Unit)
Dairy	hundredweight	$1.20**
Shell Eggs	dozen	$0.05**
Liquid Eggs	lb	$0.04**
Dried Eggs	lb	$0.14**
Frozen Eggs	lb	$0.05**

** Payment does not cover the entire year.

Flat-rate commodities are:

Alfalfa	Amaranth Grain	Buckwheat	Canola
Cotton, ELS	Crambe (colewort)	Einkorn	Emmer
Flax	Guar	Hemp	Indigo
Industrial Rice	Kenaf	Khorasan	Millet
Mustard	Oats	Peanuts	Quinoa
Rapeseed	Rice	Rice, sweet	Rice, wild
Rye	Safflower	Sesame	Speltz
Sugar Beets	Sugarcane	Teff	Triticale

Flat rate commodity payment = $15 per acre times 2020 planted acres

The Consolidated Appropriations Act, 2021, authorized an additional payment of $20 per acre for flat-rate commodities as well. New CFAP 2 applicants will receive a payment based on $35 per acre.

Sales-based commodities use 2018 or 2019 gross sales of eligible commodities as a proxy for 2020 marketings. Eligible sales only include sales of raw commodities grown by the producer. Payments are based on five payment ranges associated with their 2018 or 2019 sales, plus crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments from crop year 2018 or 2019. Commodities included are:

• Specialty crops;
• Aquaculture grown in a controlled environment;
• Livestock not included under the price trigger category that were grown for food, fiber, fur, or feathers;
• Tobacco;
• Goat milk;
• Mink (including pelts);
• Mohair;
• Wool;
• Nursery and floriculture crops;
• Pullets;
• Turfgrass Sod; and
• Grass seed.

Payments are made based on the producer’s 2018 or 2019 sales of eligible commodities, plus crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments from crop year 2018 or 2019, in a declining block format using the following payment rate factors:

2018 or 2019 Sales Range	Percent Payment Factor for the Producer’s 2018 or 2019 Sales of Eligible Commodities Falling in the Range
$0 to $49,999	10.6%
$50,000 to $99,999	9.9%
$100,000 to $499,999	9.7%
$500,000 to $999,999	9.0%
Sales over $1 million	8.8%

Example: A producer’s 2018 or 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775.

Contract livestock and poultry are eligible for CFAP 2 for up to 80 percent of their revenue losses from January 1, 2020, through December 27, 2020. Contract producers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs may be eligible. Ducks, geese, pheasants, and quail produced under contract are also eligible commodities, as well as breeding stock of eligible livestock and eggs of all eligible poultry types raised by contract producers. 

Payments for contract producers are based on a comparison of eligible revenue for the periods of January 1, 2019, through December 27, 2019, and January 1, 2020, through December 27, 2020. Contract growers may elect to use eligible revenue from the period of January 1, 2018, through December 27, 2018, instead of that date range in 2019. This is intended to provide flexibility and make CFAP 2 more equitable for contract growers who had reduced revenue in 2019 compared to a normal year for their operation. The difference in revenue is then multiplied by 80 percent to determine a final payment, as shown in the following equation:

Expected CFAP 2 Payment for Contract Producers = ((Eligible Revenue Received from January 1, 2019 through December 27, 2019 OR January 1, 2018 through December 27, 2018) – (Eligible revenue received from January 1, 2020 through December 27, 2020) x 0.80) 

FSA may adjust a contract producer’s eligible revenue based on information certified by the contract producer if the producer did not have a full period of revenue from January 1 to December 27 for either 2018 or 2019, or if the contract producer increased their operation size in 2020. Additionally, payments will be provided for eligible contract producers who were not in operation in 2018 or 2019.  Assistance for these producers is based on their 2020 eligible revenue and the average revenue loss level, which will be determined by USDA for a geographic area based on the best available data. 

Up to $1 billion were made available for contract producers through the Consolidated Appropriations Act, 2021. Payments may be factored if total calculated payments exceed the available funding. 

How did USDA determine which commodities were price trigger commodities?

Commodities included in the price trigger category are those with a 5 percent-or-greater price decline from readily available data.

• Crops: CFAP 2 payments are targeted to marketings of 2020 produced commodities in the third and fourth quarters of calendar year 2020. If there was a 5-percent-or-greater price decline comparing the average price for the week of January 13-17, 2020, and the average price for the week of July 27-31, 2020, the crop is eligible based on its price decline.
• Dairy: The average futures price decline for milk from mid-January to late-July was about 12 percent. An 80 percent factor is applied to the price difference and the payment rate is further adjusted to reflect the portion of the second quarter impacts covered under CFAP 1.
• Beef Cattle: Between the week of January 13-17, 2020, and July 27-31, 2020 the December live cattle futures contract average price fell by 10 percent. Producers chose their maximum owned inventory, excluding breeding stock, on a date they select from April 16, 2020 through August 31, 2020.
• Hogs and Pigs: Between the week of January 13-17, 2020, and July 27-31, 2020, the December lean hog futures contract average price fell by 26 percent. Producers chose their maximum owned inventory, excluding breeding stock, on a date they select from April 16, 2020 through August 31, 2020.
• Sheep and Lambs: The average mid-January to late-July price difference for market lambs and market sheep (excluding breeding stock) as reported by USDA’s Agricultural Marketing Service, was 26 percent. Producers chose their highest owned inventory, excluding breeding stock, on a date from April 16, 2020 through August 31, 2020.
• Broilers: The average mid-January to late-July price decline, as reported by USDA’s Agricultural Marketing Service, was 29 percent. Payments are made on 75 percent of the producer’s 2019 broiler production in which the producer had risk.
• Eggs: Under CFAP 2, rates are established for table eggs (those eggs intended for food use). All four uses are determined to be eligible for CFAP 2, based on a 5 percent price trigger, and payments are made based on 2019 production.

I grow a commodity classified as a price trigger commodity.  How is my payment calculated?

For crops that experienced an average 5 percent-or-greater price decline between mid-January to late-July, eligible acres of the crop, as reported to FSA on the crop acreage report, are multiplied by the applicable yield, multiplied by the crop marketing percentage, multiplied by the crop payment rate. For producers with crop insurance, the yield will be the weighted average of the producer’s 2020 actual production history (APH) approved yield from all of the producer’s insured acres nationwide. Where this data is unavailable, the yield will be the weighted 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield multiplied by 100 percent. Depending on the yield for a given producer’s crop in this category, the payment may calculate to less than $15 per acre. In such cases, the payment will be $15 per acre, which is the payment for the flat-rate category discussed below. Your FSA county office will assist in these calculations. 

The Consolidated Appropriations Act, 2021, provides an additional $20 per eligible acre additional payment for eligible price-trigger and flat rate row crops. FSA will automatically issue payments to eligible price trigger and flat-rate crop producers based on the eligible acres included on their CFAP 2 applications. Eligible producers do not need to submit a new CFAP 2 application. USDA reopened CFAP 2 for all eligible CFAP 2 commodities beginning April 5, 2021. Producers who file new applications for price trigger and flat rate row crops during the reopened application period will also receive the additional payment.

Payments for beef cattle will be based on a fixed number of head, which is equal to the lower of the producer’s maximum owned inventory of eligible beef cattle, excluding breeding stock, on a date selected by the producer from April 16, 2020, through August 31, 2020, multiplied by the payment rate of $55 per head.

Payments for hogs and pigs will be based on a fixed number of head, which is equal to the lower of the producer’s maximum owned inventory of eligible hogs and pigs, excluding breeding stock, on a date selected by the producer from April 16, 2020, through August 31, 2020, multiplied by a payment rate of $23 per head.

Payments for market lambs and market sheep will be equal to the highest inventory of eligible lambs and sheep, excluding breeding stock, on a day chosen by the applicant from April 16, 2020, through August 31, 2020, multiplied by a payment rate of $27 per head.

Payments for broilers will be equal to 75 percent of 2019 eligible broiler production multiplied by a payment rate of $1.01 per bird.

Payments for dairy (cow milk) will be equal to the sum of the following two calculations:

• Actual milk production from April 1, 2020, to August 31, 2020, multiplied by the payment $1.20 per hundredweight; and
• The estimated milk production from September 1, 2020, to December 31, 2020, based on the daily average production from April 1, 2020, through August 31, 2020, multiplied by 122, multiplied by a payment rate of $1.20 per hundredweight.

Payments for eggs will be equal to 75 percent of 2019 eligible egg production multiplied by the payment rate.

I grow a commodity included in the flat rate category. How will my payment be calculated?

Producers of these commodities receive a $15 per-acre payment based on their 2020 planted acres of the crop, excluding prevented planted or experimental acres, as reported to FSA on the crop acreage report.

The Consolidated Appropriations Act, 2021, provides an additional $20 per eligible acre additional payment for eligible price-trigger and flat rate row crops. FSA will automatically issue payments to eligible price trigger and flat-rate crop producers based on the eligible acres included on their CFAP 2 applications. Eligible producers do not need to submit a new CFAP 2 application. USDA reopened CFAP 2 for all eligible CFAP 2 commodities beginning April 5, 2021. Producers who file new applications for price trigger and flat-rate row crops during the reopened application period will also receive the additional payment.

What if I don’t have a 2020 actual production history (APH) approved yield?

For producers for whom FSA is unable to obtain a 2020 APH approved yield, the yield will be the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield multiplied by 100 percent. ARC-CO yields for producers growing a crop in multiple counties will be weighted based on the producer’s crop acreage physically located in each county.

Q. What if I don’t have a 2020 FSA-578 crop acreage report on file with FSA?

Producers who are applying for payment for price trigger or flat-rate crops must file a report of all acreage for the crop on FSA-578, Report of Acreage. If a producer has not completed a crop acreage report for 2020, a late filed report will be accepted. If the producer is filing the FSA-578 for CFAP 2 purposes only, there will be no late-file fee or farm inspection.

What if I am a new producer of eggs, broilers, or the sales commodities in 2020 and have no 2018 or 2019 revenue?

Payments for such producers will be based on the producer’s actual 2020 production or sales as of the date the producer submits an application.

What if I am a producer of eggs, broilers, or the sales commodities and only farmed for part of 2018 or 2019?

Payments for such producers will still be based on the producer’s actual 2018 or 2019 production or sales.

What if I am a new producer of livestock or poultry raised under contract in 2020 and have no 2018 or 2019 revenue?

Payments will be provided for eligible contract producers who were not in operation in 2018 or 2019. Assistance for these producers is based on their 2020 eligible revenue and the average revenue loss level, which will be determined by USDA for a geographic area based on the best available data. USDA announced this update on August 24, 2021.

Can I include the insurance indemnity I received from my apiculture policy?

No. The apiculture policy provides for coverage of loss for the colony or hive, not for the production loss of an eligible CFAP 2 commodity.

Sales Commodities

What is included in the 2018 or 2019 sales used to calculate payments?

Eligible sales only includes sales of raw commodities grown by the producer. Any portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, are not included in 2018 or 2019 sales for a CFAP 2 payment. The amount of sales to be included is sales received in calendar year 2018 or 2019.

What 2018 or 2019 sales should I include on my CFAP 2 application for sales commodities?

CFAP 2 payments are available for eligible producers of sales commodities. Sales commodities have payment calculations that use a sales-based approach, where producers of eligible commodities are paid based on five payment gradations associated with their 2018 or 2019 sales, plus insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP) payments, and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments for the 2018 or 2019 crop year. 

Eligible sales only include sales of raw commodities grown by the producer. Typically, when the crop makes the first point of entry to a processing facility or the market, there is an increase to the value of the commodity. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, is not included in the CFAP 2 payment calculation.

To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records. However, since CFAP 2 is a self-certification program, this documentation will not need to be submitted with the application.

In general, the value of sales certified to include on the CFAP 2 application is the value of the production delivered to the first buying point, warehouse, or packer excluding any value derived from sorting, bagging, boxing, or other activities necessary for a consumer-ready sale. This “farm gate” value would capture the value from activities on the farm such as growing and harvesting, any on-farm practices necessary to the production of the commodity such as fumigation (if incurred on the farm), and basic packaging for wholesale or bulk transportation.

Processing or special packaging, whether or not those activities are performed on the farm, should be excluded from this value. Also, costs associated with marketing those commodities would be adding value to the “farm gate” commodity and excluded from the sales certified. 

Example 1: Joe grows fruit and sells it through a sorting and processing operation on his farm, which serves other local fruit growers as well. Joe harvests the fruit mechanically, packing it in large crates to transport to the processing facility. The value of sales Joe would enter on the CFAP 2 application would include the value captured by harvesting the fruit and loading it in crates but would be reduced for the value added to the fruit at the processing facility, such as grading, re-packaging, fumigation, brokering fees, and transportation to market hubs.

Example 2: Sally breeds and grows buffalo for direct marketing of the meat and byproducts to online customers. Sally’s sales records show several income streams from various products she sells including buffalo meat, hides, and shoulder mounts. The sales value Sally would enter on the CFAP 2 application would be the value of the live animal “delivered” to the point of harvest, whether on or off farm. After delivery there is value added to the animal by processing the animal into the various products sold. Sales of the by products such as meat, hides, and shoulder mounts should not be included, only the value of the live animal.

Example 3: Charlie raises a herd of alpacas and sells alpaca fleece. Charlie would enter the value of 2018 or 2019 raw sales of alpaca fiber on the CFAP 2 application, not the yarn or the value of the animal.

Example 4: Doug raises almonds and walnuts that he sells through a tree nut pool. The nuts can be in the pool for multiple months. For CFAP 2 Doug would claim the sales that occurred in the 2018 or 2019 calendar year and not the sales of the 2018 or 2019 crop which may not be sold yet.

Example 5: Eustis raises vegetables to sell at the farmers market. He sells raw cucumbers directly to customers. Those sales can be claimed on the CFAP 2 application because there was no value added from the field to the farmers market. 

Example 6: Fred owns a winery where he processes his own grapes and produces his own wine. Fred also buys grapes from his neighbor. On the CFAP 2 application Fred can claim the value of his grapes produced in 2018 or 2019 and use the price he paid for his neighbors’ grapes as the value for his grapes. Fred cannot claim the wine sales from 2018 or 2019 on the CFAP 2 application.

CFAP 2 is a self–certification program. Because applications are subject to County Committee review and spot check, some producers will be required to provide documentation. Producers should retain the records and documentation they used to complete the application and be prepared to explain how they determined the farm gate value of the commodity.

Information on additional documents is provided at farmers.gov/cfap/apply.

How will producers who process their own crop instead of selling the raw commodity determine the farm gate value?

Producers will certify to the value of the commodity at the farm gate. The producer must be able to provide the basis they used to convert sales to the value of the raw commodity, which will need to be determined reasonable and acceptable by the reviewing authority, if selected for spot check.

Will FSA provide guidance on how to remove the processing or packaging value for producers with commodities that are sold with processing or packaging?

The amount of sales is based on the producer’s certification of sales. The producer has the burden of supporting the methodology used to convert value-added sales to raw product when asked.

A recommended conversion factor is provided to FSA staff for conversion of maple syrup to the value of the raw maple sap.

Can I include the insurance indemnity I received from my apiculture policy?

No.  The apiculture policy provides for coverage of loss for the colony or hive, not for the production loss of an eligible CFAP 2 commodity.

What other livestock will be considered under this category of payment?

Other livestock means any of the following livestock not produced under contract: animals commercially raised for food, fur, fiber, or feathers, including alpacas, bison, buffalo, beefalo, deer, ducks, elk, emus, geese, goats, guinea pigs, llamas, mink (including pelts), ostrich, pheasants, pullets, quail, rabbits, reindeer, turkey, water buffalo, and yak. 

CFAP 2 excludes all equine, breeding stock not produced under contract, companion or comfort animals, pets, and animals raised for hunting or game purposes.

You can learn more about livestock eligible for CFAP at farmers.gov/cfap2/specialty-livestock and farmers.gov/cfap2/livestock. Visit farmers.gov/cfap to learn about eligibility requirements for livestock and poultry produced under contract.

What tree nuts are included?

The following tree nuts are eligible for CFAP 2: almonds, avocados, carob, cashew, chestnuts, coffee, hazel nuts, jojoba, macadamia nuts, noni, olives, pecans, persimmons, pine nuts, pistachios, quinces, and walnuts.

What vegetables are eligible for CFAP 2?

The following vegetables are eligible for CFAP 2: alfalfa sprouts, aloe vera, artichokes, arugula (greens), asparagus, bamboo shoots, batatas, bean sprouts, beans (including dry edible), beets, bok choy, broccoflower, broccoli, broccolini, broccolo-cavalo, Brussel sprouts, cabbage, calaloo, carrots, cauliflower, celeriac, celery, chickpea (see beans, garbanzo), chives, collard greens, coriander, corn, sweet, cucumbers, daikon, dandelion greens, dasheen (taro root, malanga), dill, eggplant, endive, escarole, frisee, gailon (gai lein, Chinese broccoli), garlic, gourds, greens, horseradish, Jerusalem artichokes (sunchoke), kale, kohlrabi, leeks, lentils, lettuce, melongene, mesculin mix, microgreens, mushrooms, okra, onions, parsnip, peas (including dry edible), pejibaye (heart of palm), peppers, potatoes, potatoes sweet, pumpkins, radicchio, radishes, rhubarb, rutabaga, salsify (oyster plant), scallions, seed - vegetable, shallots, spinach, squash, swiss chard, tannier, taro, tomatillos, tomatoes, truffles, turnip top (greens), turnips, yam, and yautia (malanga).

Which fruits are eligible for CFAP 2?

The following fruits are eligible for CFAP 2: abiu, acerola (Barbados cherry), achachairu, antidesma, apples, apricots, aronia (chokeberry), atemoya (custard apple), bananas, blueberries, breadfruit, cacao, caimito, calabaza melon, canary melon, canary seed, caneberries, canistel, cantaloupes, carambola (star fruit), casaba melon, cherimoya (sugar apple), cherries, Chinese bitter melon, citron, citron melon, coconuts, cranberries, crenshaw melon, dates, donaqua (winter melon), durian, elderberries, figs, genip, gooseberries, grapefruit, grapes, ground cherrry, guamabana (soursop), guava, guavaberry, honeyberries, honeydew, huckleberries, Israel melons, jack fruit, jujube, juneberries, kiwiberry, kiwifruit, Korean golden melon, kumquats, langsat, lemons, limequats, limes, longan, loquats, lychee, mangos, mangosteen, mayhaw berries, mesple, mulberries, nectarines, oranges, papaya, passion fruits, pawpaw, peaches, pears, pineapple, pitaya (dragon fruit), plantain, plumcots, plums, pomegranates, prunes, pummelo, raisins, rambutan, sapodilla, sapote, schizandra berries, sprite melon, star gooseberry, strawberries, tangelos, tangerines, tangors, wampee, watermelon, wax jamboo fruit, and wolfberry (goji).

Which other horticultural crops are eligible for CFAP 2?

The following horticulture is eligible for CFAP 2: anise, basil, cassava, chervil (Fresh parsley), chia, chicory (radicchio), cilantro, cinnamon, curry leaves, galanga, ginger, ginseng, guayule, herbs, hops, lotus root, marjoram, meadowfoam, mint, moringa, niger seed, oregano, parsley, pennycress, peppermint, pohole, psyllium, rosemary, sage, savory, shrubs (forbs), sorrel, spearmint, tangos, tea, thyme, turfgrass sod, turmeric, vanilla, wasabi, water cress, and yu cha.

What aquaculture species are eligible for coverage under CFAP 2?

USDA will cover eligible aquaculture species grown and harvested from a controlled environment, including raceways, ponds, tanks, and recirculating systems. Any species of aquatic organisms grown as food for human consumption, fish raised as feed for fish that are consumed by humans, or ornamental fish propagated and reared in an aquatic medium is eligible.

Eligible aquaculture species must be raised by a commercial operator, in water, and in a controlled environment. This includes molluscan shellfish and seaweed covered under the U.S. Department of Commerce CARES Act program.

Is grass seed an eligible commodity for CFAP 2?

Yes. USDA determined that producers of grass seed faced continuing market disruptions, low farm-level prices, and significant marketing costs associated with the COVID–19 outbreak, similar to producers of commodities that were previously determined to be eligible for CFAP 2 assistance. As a result, on August 24, 2021, USDA announced that grass seed are eligible for CFAP 2.

Are contract livestock and/or poultry producers eligible for CFAP?

Yes. USDA is providing up to $1 billion for payments to contract producers of eligible livestock and poultry of up to 80 percent of their revenue losses from January 1, 2020, through December 27, 2020. These funds were made available through the Consolidated Appropriations Act, 2021.

Contract producers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs may be eligible for CFAP 2. Ducks, geese, pheasants, and quail produced under contract are also eligible commodities, as well as breeding stock of eligible livestock and eggs of all eligible poultry types raised by contract producers.