On Friday, the administration announced details of the new $14-billion-dollar Coronavirus Food Assistance Program, or CFAP2, that will provide direct payments to farmers and ranchers to partially offset COVID-19-related losses for producers. American Farm Bureau Federation Chief Economist John Newton says the aid extends to new commodity categories…
A Market Intel analysis by the American Farm Bureau Federation details the CFAP2 provisions, which provides nearly $14 billion in relief to farmers and ranchers suffering losses or increased cost after April 15, stemming from the COVID-19 pandemic.
Of the $14 billion in CFAP2 support, USDA’s cost-benefit analysis estimates corn producers will receive $3.5 billion, or 25 percent of the total CFAP2 resources. Following corn, beef cattle producers are expected to receive $2.8 billion, or 20 percent of CFAP2 funding.
Dairy farmers are expected to receive $2 billion, or 14 percent of the available support. Hog producers are estimated to receive $1.7 billion or 12 percent of CFAP2. Soybean producers are estimated to receive $1.4 billion, or ten percent of the funds. Wheat, flat-rate crops, eggs and other commodities are expected to receive $2.5 billion, or 18 percent.
As recently as September 1, Ag Secretary Sonny Perdue said USDA was finishing up writing the rules for the second round of the Coronavirus Food Assistance Program. Late last week at a stop in Iowa, the secretary said the rules have been written and they’ll be announced this week.
The Bismarck Tribune says the first $16 billion in funding during the first round of the program was geared to the first quarter of 2020. The idea was to just get the aid out the door as quickly as possible to whoever needed it. Round two of the program will factor in more producer feedback to make it a program that works best for the people who truly need it. Farm Journal’s Ag Web Dot Com says payments in the second round will compensate producers for any losses they had from April 15 through the end of 2020.
The deadline for applying during the first round of CFAP is this Friday, September 11. He says round two payments will go to the same commodities they did in the first round. There won’t be any money for ethanol producers and other agricultural commodities seeking aid because of COVID-19. Perdue says he doesn’t have the necessary authority from Congress to make those particular payments.
Congress won’t consider any coronavirus relief until September, and the streamlined package won’t likely include agriculture.
Senate Republicans indicate they plan to introduce a “skinny” bill next month, according to the Hagstrom Report. The Senate returns to session on September 8, and the House has scheduled to return for committee meetings on September 8, with the full House returning to session September 14.
The delay sets up speculation the general coronavirus aid may be included in spending bills Congress must pass by September 30, the end of the current fiscal year. Congress must also pass the spending bills to avoid a government shutdown. Many in agriculture agree more aid is needed for farmers and ranchers facing losses from the COVID-19 pandemic.
The failed HEALS Act in the Senate would have provided an additional $20 billion for agriculture. The CARES Act included $14 billion for agriculture, and the Coronavirus Food Assistance Program includes $16 billion for agriculture.