Policy Markets

USDA updates CFAP 2 aid for livestock and poultry contract producers

The USDA is including contract livestock and poultry producers in the latest update of COVID-19 assistance.

25 August 2021

3 minute read

North America

CFAP 2, which assists producers who faced market disruptions in 2020 due to COVID-19, is part of USDA’s broader Pandemic Assistance for Producers initiative. Additionally, USDA’s Farm Service Agency (FSA) has set a 12 October deadline for all eligible producers to apply for or modify applications for CFAP 2.

“We listened to feedback and concerns from producers and stakeholders about the gaps in pandemic assistance, and these adjustments to CFAP 2 help address unique circumstances, provide flexibility and make the program more equitable for all producers,” said FSA Administrator Zach Ducheneaux. “The pandemic has had a tremendous impact on agricultural producers, and we have made significant progress since announcing our plans in March. While additional pandemic assistance remains to be announced in the coming weeks, USDA is also ramping up its efforts to make investments in the food supply chain to Build Back Better.”

Assistance for contract producers

The Consolidated Appropriations Act, 2021, provides up to $1 billion for payments to contract producers of eligible livestock and poultry for revenue losses from 1 January 2020, through 27 December 2020. Contract producers of broilers, pullets, layers, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail may be eligible for assistance. This update includes eligible breeding stock and eggs of all eligible poultry types produced under contract.

Payments for contract producers were to be based on a comparison of eligible revenue for the periods of 1 January 2019, through 27 December 2019, and 1 January 2020, through 27 December 2020.

These changes mean contract producers can now elect to use eligible revenue from the period of 1 January 2018, through 27 December 2018, instead of that date range in 2019 if it is more representative. This change is intended to provide flexibility and make the program more equitable for contract producers who had reduced revenue in 2019 compared to a normal production year. The difference in revenue is then multiplied by 80% to determine a final payment. Payments to contract producers may be factored if total calculated payments exceed the available funding and will be made after the application period closes.

Additional flexibilities have been added to account for increases to operation size in 2020 and situations where a contract producer did not have a full period of revenue from 1 January to 27 December for either 2018 or 2019. Assistance is also available to new contract producers who began their farming operation in 2020.

Applying for assistance

Sign-up for CFAP 2 was re-opened in March and remains open to address inadequate initial outreach efforts to reach underserved producers and particularly those who produce sales commodities. Newly eligible producers who need to submit a CFAP 2 application or producers who need to modify an existing one can do so by contacting their local FSA office. Producers can also obtain one-on-one support with applications by calling 877-508-8364. All new and modified CFAP 2 applications are due by the 12 October deadline.

As USDA looks to long-term solutions to build back a better food system as announced in June, the Department is committed to delivery of financial assistance to farmers, ranchers and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. Since USDA rolled out the Pandemic Assistance for Producers initiative in March, the Department has announced approximately $7 billion in assistance to producers and agriculture entities. Previously announced pandemic assistance has included:

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