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COVID Relief Update - 3/25/2021
On March 24, the U.S. Department of Agriculture (USDA) announced more than $1.1 billion in payments for cattle producers. These payments are long-awaited—they were derived from the formulas and appropriations provided in the Consolidated Appropriations Act, 2021. This legislation was enacted in December 2020, but no official action from USDA had been taken until this week.
What you need to know:
- USDA is referring to the assistance as an “increase in CFAP 1 payment rates for cattle.” Payments will be based on the number of cattle inventory between April 16, 2020 and May 14, 2020. NOTE: You already submitted this information last year to the USDA Farm Service Agency (FSA).
- Cattle producers with approved CFAP 1 applications will automatically receive these payments beginning in April.
- Eligible producers do not need to submit new applications, since payments are based on previously approved CFAP 1 applications.
- NOTE: If you maxed out the payment limitation ($250k/individual or legal entity) for CFAP 1 last year, you will not be eligible to receive the newly announced assistance. However, payment limitations differ for LLCs, corporations, and limited partnerships with multiple shareholders that contribute active management or labor. Consult your local FSA to determine your eligibility, if you believe this applies to your operation.
A note on CFAP 2:
USDA’s previous deadline for CFAP 2 was December 11, 2020. Most cattle producers applied before the deadline last year. NOTE: If you already received your CFAP 2 payment, you cannot reapply. However, if you missed this deadline, you will be allowed to submit an application beginning on April 5, 2021. The new deadline to apply has not been announced, but FSA will be accepting applications for at least 60 days.
CFAP 2 payments for cattle producers are based on the producers’ owned inventory of eligible cattle, excluding breeding stock, on a date chosen by the producer between April 16, 2020 and August 31, 2020. The inventory is multiplied by the payment rate of $55/head, up to $250,000 or 4,546 head/producer. There are additional provisions related to payment limitations. Consult your local FSA for further guidance as needed.
Questions may be directed to Cora Fox, Director of Government Relations: 515-296-2266 or [email protected]
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