On April 17, 2020, U.S. Department of Agriculture (USDA)
announced the $19 billion Coronavirus Food Assistance Program (CFAP) to support
farmers and ranchers during the COVID-19 pandemic.
The program includes $16 billion in direct payments to
farmers and ranchers including $9.5 billion of emergency funding from the CARES
Act and $6.5 billion of funding from the Commodity Credit Corporation
Of the $19 billion, $5.1 billion has been allocated for
cattle producers to partially offset 2020 losses due to COVID-19. Producers
will receive a single payment determined using two calculations:
Price losses that occurred January 1-April 15, 2020. Producers will be compensated for 85% of price loss during that period.
Second part of the payment will be expected losses from April 15 through the next two quarters and will cover 30% of expected losses.
The payment limit is $125,000 per commodity, with an overall
limit of $250,000 per individual or entity. Qualified commodities must have
experienced a 5% price decrease between January and April. MSGA efforts have
been to ensure this program will be of assistance to cow-calf producers in the
Although CFAP still has to be approved by the Office of
Management and Budget (OMB), the program is expected to begin sign-up in early
May and producers could possibly receive payments by the end of May or early in
MSGA will continue to update our members on important information regarding this program.