Coronavirus Food Assistance Program (CFAP) for Non-Specialty Crop Producers

Please note the purpose of this publication was for timely education in response to the COVID-19 pandemic (in June of 2020). It is up to the reader to seek current education on the topical content included in the publication.

If you have questions about the content of this publication, please contact the authors.

The Coronavirus Food Assistance Program (CFAP) for non-specialty crops provides help for producers of commodities that suffered significant price declines from the COVID-19 pandemic. In addition to non-specialty crops, CFAP payments are also available for wool, livestock, dairy and specifically mentioned eligible specialty crops.^1,2

Producers of non-specialty crops (see table 2 for eligible crops) who suffered a five percent or greater price decrease are eligible to apply through August 28, 2020. The five percent price decrease uses the January 13-17 average price relative to April 6-9 average price. The payment will be paid based on inventory subject to price risk on January 15, 2020. Table 1 shows the USDA’s explanation of inventory subject to price risk.^3,4

Table 1. CFAP Contract Eligibility.

Source: US Department of Agriculture, Farmers.gov.²

Payment Calculation

To apply for a payment, the producer must provide the following for each commodity eligible for payment:

1. Total 2019 production for the commodity
2. Total 2019 production that was not sold and was still open to price risk as of January 15, 2020.

This information is recorded in part D of Form AD-3114 Coronavirus Food Assistance Program (CFAP) Application.

Each commodity’s quantity to count for payment is the lesser of

1. 50% of 2019 production, or
2. the unpriced inventory as of January 15, 2020.

Each commodity’s payment = (Quantity X 50% X CARES Rate) + (Quantity X 50% X CCC Rate). The CARES and CCC Payment rates are shown in table 2. The USDA will make an initial payment of 80% of an eligible participant’s calculated CFAP payment. USDA will disburse the remainder of a producer’s payment if funding (not to exceed $16 billion) is available. ^2,4

Table 2. CFAP Payment Rates.

Source: US Department of Agriculture, Farmers.gov.²

Non-Specialty Crop Example

Producer “John Smith” intends to apply for a CFAP payment on his 2019 corn production. He completed Part D of USDA Form AD-3114, as shown below:

Figure 1. Part D of USDA Form AD-3114. Image credit: US Department of Agriculture.

John had of his corn all (101,903 bushels) in storage January 31, 2020. However, he had the following contracts in existence on January 15, 2020.

1. 10,000 bushels Futures Contract (2-CH20 contracts, sold on 12/18/19 for $3.87.)
2. 15,000 bushels Forward Contract. (Local elevator for delivery in February 2020 for $4.52)
3. 25,000 bushels Hedge to Arrive Contract. (5-CH20 contracts sold at an average price of $4.07).

John is considered to have 50,000 bushels of corn priced, leaving 51,903 bushels unpriced. 50% of his 2019 production is 50,952 bushels. He is eligible for a CFAP payment on 50,952 bushels of corn as his January 15 inventory is greater than 50% of the total 2019 production. His payment would be

1. 50,592 bushels X 50% X CARES Act Payment rate ($0.34) = $8,600.64
2. 50,592 bushels X 50% X CCC Payment rate ($0.37) = $9,347.87
3. Total Maximum Payment = $17,948.51
4. Initial Payment @ 80% = $14,358.81

Other Considerations

CFAP payments for non-specialty crops can also be made under the following circumstances:

1. Producers who deliver eligible commodities to a cooperative are eligible for CFAP payments if they maintain and share in the risk of the eligible commodity as required by the applicable dates specified in CFAP policies. Cotton is an example of a commodity often delivered to member-owned cooperatives.³
2. While CFAP excludes “forages,” USDA is allowing producers to convert applicable silage to bushels of grain equivalent. The payment will be based on the lessor of 50% of the total 2019 production or inventory as of January 15, 2020. The expected conversion rates are:
   1. Corn silage = 7.94 bushels per ton
   2. Grain sorghum silage = 5.56 bushels per ton
   3. Barley silage = 6.47 bushels per ton
   4. Oat silage = 4.08 bushels per ton
   5. Soybean silage = 5.00 bushels per ton
   6. Wheat silage = 6.99 bushels per ton

Other silage or forages may be eligible. Confirm the conversion rates and eligibility with your local Farm Service Agency office.

Producers will be allowed to amend a previously submitted CFAP application. This may occur when a currently ineligible commodity becomes eligible after the producer has submitted their application.³

Payment Limitations

CFAP payments are limited to a per person limitation of $250,000 and include all eligible commodities. Unlike other Farm Service Agency (FSA) programs, special rules apply to farms that are corporations, limited liability companies (LLCs), and limited partnerships. The program entitles these three entities as “corporate entities.” Corporate entities may receive up to $750,000 based upon the number of shareholders, up to three at $250,000 per shareholder. To qualify, a shareholder must be contributing at least 400 hours of active management and or active labor.

All payments will be reduced by 20 percent to allow the USDA-FSA to help ensure the availability of funds for as many producers as possible. If funds are still available later, the remaining 20 percent or a portion of the remaining 20 percent may be paid.

Application Process

Farmers are encouraged to contact their local FSA office to discuss signup as soon as possible. FSA staff will work with producers to file applications. Applications may be submitted via mail, fax, hand delivery, or via electronic means. USDA asks that you please call your local FSA office prior to sending applications electronically.

The CFAP application and associated forms are available online at farmers.gov/cfap.

There are several forms to fill out to participate in the CFAP program. If you have enrolled in FSA programs in the past, any forms you have already completed will be on file with the FSA. The CFAP application period will end on August 28, 2020.

As with other Federal/State Coronavirus response programs, some details of this program are yet to be defined, and interpretations/determinations may change. Please look for the most current information at www.farmers.gov/cfap

Additional Resources

Additional resources and information on assistance programs related to COVID-19 can be found at

• Clemson Cooperative Extension, Agribusiness Program Team Resources for COVID-19 website
• Michigan State University Extension, Farm Management Agribusiness Resources for Novel Coronavirus website 

References Cited

1. Notice of Funding Availability; Request for Comments. Department of Agriculture, Office of the Secretary. Docket ID: FSA-2020-0004. https://www.farmers.gov/sites/default/files/documents/CFAP%20NOFA.pdf.
2. Coronavirus Food Assistance Program Final Rule. Federal Register Rules and Regulations Vol. 85, No. 99 Thursday, May 21, 2020; Department of Agriculture, Office of the Secretary. 7 CFR Part 9, Docket ID: FSA-2020-0004, RIN 0503-AA65. https://www.farmers.gov/sites/default/files/documents/cfapfrm-05212020.pdf.
3. Coronavirus Food Assistance Program (CFAP). Washington (DC): US Department of Agriculture. https://www.farmers.gov/cfap.
4. Coronavirus food assistance program: cost-benefit analysis. Washington (DC): US Department of Agriculture; 2020 May 14. https://www.farmers.gov/sites/default/files/documents/CFAP%20CBA%205%2015%202020.pdf.