As part of USDA's effort to provide assistance to producers adversely affected by the Covid-19 pandemic, on March 24th, USDA announced<https://www.usda.gov/media/press-releases/2021/03/24/after-identifying-gaps-previous-aid-usda-announces-pandemic> a new initiative-USDA Pandemic Assistance for Producers-intended to reach a broader set of producers than in previous COVID-19 aid programs. While the new program still needs to undergo a formal rulemaking process at USDA, it's NCBA's understanding that USDA intends to open it up to producers this spring. The program will include additional COVID-19 aid for producers, and other efforts to strengthen the resiliency of the national food supply. NCBA is continuing to closely track this in initiative and advocate for practical measures that benefit the cattle industry.
Additionally, USDA announced changes to the existing CFAP program. The Consolidated Appropriations Act, 2021, enacted December 2020 requires USDA to make certain payments to cattle producers according to the formulas mandated in statute. Because of this, USDA is now expediting the implementation of these provisions without any additional rulemaking. Below please find additional information regarding the CFAP announcement.
USDA is implementing an increase in CFAP 1 payment rates for cattle based on the number of cattle in inventory between April 16, 2020, to May 14, 2020. Cattle producers with approved CFAP 1 applications will automatically receive these payments. Eligible producers do not need to submit a new CFAP 1 application form or take any action. Only producers who previously applied for CFAP 1 are eligible to receive this additional payment.
Class of Cattle, Payment Rate
Feeder Cattle: less than 600 lbs $7.00/head
Feeder Cattle: 600 lbs or more $25.50/head
Slaughter Cattle: fed cattle $63.00/head
Slaughter Cattle: mature cattle $14.75/head
All Other Cattle $17.25/head
The original application period for CFAP 2 was September 21 through December 11, 2020. However, beginning April 5, FSA began accepting new and modified CFAP 2 applications. While this is unlikely to impact a great number of cattle producers, it will benefit any individuals who may have missed the original signup deadline.
Additional information can be found at www.farmers.gov/cfap