For the Coronavirus Food Assistance Program 2 (CFAP 2), the Farm Service Agency (FSA) has issued guidance to further clarify who is considered a “contract grower” relative to eligibility for the program.
“For CFAP 2, 'contract grower' is a person or legal entity who grows or produces an eligible commodity or livestock under contract for someone else,” FSA said. “The contract grower's income is dependent upon the successful production of a crop or livestock or offspring from livestock.”
FSA further noted that a contract grower “does not have ownership in the commodity or livestock and is not entitled to a share from sales proceeds of the commodity or livestock.”
Using that definition FSA said, “A person or legal entity that raises or grows an eligible commodity under contract and has both ownership and risk of production loss in the commodity or livestock is eligible for CFAP 2.”
That definition is key, FSA noted as those signing a CFAP 2 application are “certifying that they have both an ownership share and risk in the commodity or livestock included on the application.”