Alberta Barley

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May 23

USDA Coronavirus Food Assistance Program (CFAP) details unveiled with more to come

Posted on May 23 By: Erin Tateson

This week, further details were announced on the direct assistance portion of the USDA CFAP program through their website ( Beginning May 26, US farmers will be able to apply to the direct assistance program. Eligible farmers and ranchers will receive one CFAP payment, drawn from two possible funding sources.

The first source of funding is $9.5 billion in appropriated funding provided in the CARES Act and compensates farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and for specialty crops for product that was shipped and spoiled or unpaid product. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.

There are some differences in the final structure than previously reported. Producers will receive 80% of their maximum total payments once their application is accepted. The remaining portion of the payment will be paid at a later date as funds remain available. Limits have been confirmed on payments as well: $250,000 per individual or $750,000 for corporations with up to 3 shareholders.

Of interest to our members, among the many eligible crops are malting barley, canola, corn, soybeans, durum wheat, and hard red spring wheat. Some familiar commodities that are not eligible include soft red winter wheat.

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