USDA unveiled the Coronavirus Food Assistance Program (CFAP) details, providing a list of eligible commodities, those commodities that are not eligible, payment limits and other information on the effort that will provide $16 billion in direct payments to farmers and ranchers suffering at least a 5% price decline over a specified period.
USDA has not provided a lot of specifics on how the payments will work, creating confusion in the ag industry. The fact that two pools of money are being used is causing confusion. Those pots of money include $9.5 billion under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and $6.5 billion in authority under the Commodity Credit Corporation (CCC) Charter Act.
There are two payment rates involved in the calculations for what are labeled non-specialty crops such as corn, soybeans and more.
There is also a list of commodities that were not deemed eligible as they had not suffered a 5% decline in prices over the period from mid-January to mid-April, but USDA will seek comments on crops excluded and may add them into the mix down the road.
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