Commodities

Trump is going to help agricultural producers with $14 billion

According to the latest news, U.S. President Donald Trump and Secretary of Agriculture Sonny Perdue are going to spend $14 billion to support agricultural producers. This action aims to repair economic damage from coronavirus disease. The Coronavirus Food Assistance Program (CFAP 2) will start on September 21 and continue to December 11.

USDA, United States Department of Agriculture will use funds to make available from the CCC (Commodity Credit Corporation) Charter Act and CARES act. They are going to support row crops, livestock, specialty crops, dairy, aquaculture, and many other commodities.

Significantly, agricultural producers can apply CFAP 2 at USDA’s Farm Service Agency county offices. This plan aims to help producers financially and give the ability to absorb expanded marketing costs associated with the Coronavirus. Farmers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.

CFAP 2 payments will be for three categories of commodities

CFAP 2 payments will be for three categories of commodities: price trigger commodities, flat-rate crops, and sales commodities.

Price trigger commodities are commodities that meet a minimum 5% price decline over a specified period. Eligible price trigger crold include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all wheat classes.

Producers will take 75% of 2019 production for broilers and eggs while on dairy (cow’s milk), producers will take payment on actual milk production from April 1 to August 31, 2020. Moreover, the Farm Service Agency will evaluate milk production for September 1 to December 31, 2020.

Significantly, crops that do not face the 5% price decline trigger will have payments calculated based on eligible 2020 acres multiplies by $15 per acre.

These crops include alfalfa, oats, peanuts, extra-long-staple cotton, sesame, rice, hemp, safflower, millet, mustard, sesame, triticale, rapeseed, and several others.

Sales commodities include specialty crops, nursery crops, aquaculture, and floriculture;

Remarkably, payment calculation will use a sales-based approach, where producers will take payment considering their 2019 sales.

As we know, the Covid-19 pandemic damaged many agricultural operations. Therefore, manufacturers can apply for CFAP 2. for compensations. Producers can also find A complete list of eligible commodities and payment rates on the website.

There is a payment limitation of $250,000 per person or entity for all commodities merged. Applicants who are organizations, limited liability companies, or limited partnerships may qualify for further payment limits when members actively provide personal labor or personal management for the farming operation.

Producers can apply for assistance beginning September 21, 2020, and they will know about the answer until December 11, 2020.

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