What You Need to Know About CFAP Assistance

The Coronavirus Food Assistance Program (CFAP) will aid agricultural producers impacted by the effects of the COVID-19 outbreak. On May 19, 2020, USDA published a rule that specifies the eligibility requirements, payment calculations and application procedures for CFAP.

The program will be administered by the USDA-Farm Service Agency (FSA).

To help inform you of the program requirements and application process, we created a short webinar outlining the three-step process. We've also outlined the steps below, and a printable version can be downloaded here.

STEP #1 – Locate your local FSA service center
USDA service centers are open for business by phone appointment only. FSA is also working with producers by phone, email, mail and fax.

STEP #2 – Submit completed forms to FSA
Complete the forms below and submit them to your local service center. If you are already established with FSA, it is likely many of these forms are already on file at your local FSA service center. However, if your average AGI for the previous three years is more than $900,000, Form CCC-942 must be signed by your CPA or attorney to verify that 75% of your income is from agriculture.

• Member’s Information (Form CCC-901) – Identifies members of a feedyard, farm, ranch, etc. that area legal entity. Individuals and other business entities are eligible to participate in FSA programs.
• Average Adjusted Gross Income (AGI) Certification (Form CCC-941) – Reports your AGI from 2018, 2017, and 2016. Authorizes tax data to be obtained from the IRS for AGI compliance verification.
• Certification of Income from Farming, Ranching and Forestry Operations (Form CCC-942) – If AGI reported on Form CCC-941 exceeds $900,000, Form CCC-942 will need to be signed by the individual applying for assistance and certified by your Certified Public Accountant or Attorney.
• Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification (Form AD-1026) – Ensures compliance with highly erodible land conservation and wetland conservation.
• Customer Data Worksheet Request for Business Partner Record Change (Form AD-2047) – Provides basic customer contact information.
• ACH Vendor/Miscellaneous Payment Enrollment Form (Form SF-3881) – Collects banking information to allow USDA to make payments via direct deposit. This form must be signed by the individual applying for assistance and a representative from your financial institution.

STEP #3 – Complete the CFAP application
Key elements of CFAP for cattle are provided in the summary below; however, as this process evolves you can find the latest information on USDA’s website.

1. Application window: Accepted by USDA-FSA from May 26 – Aug. 28, 2020. A USDA Fact Sheet on CFAP for Livestock Producers is now available on the USDA website.

2. Application form: USDA’s payment calculator spreadsheet and application form (AD-3114) are now available on the CFAP page on the USDA website. If you need more space on the application form, a continuation sheet for AD-3114 should be used (attached as many copies of the continuation sheet as needed). A video of the payment calculator is also available on the website.

3. Eligibility: Less than $900,000 AGI (average of 2016, 2017 & 2018); however, the AGI limit does not apply if more than 75% of income is from agriculture.

4. Payment limit: $250,000 per person.

5. Corporate payment limit: Maximumof $750,000 for corporations, LLCs, and LPs based on at least three shareholders with a $250,000 limit per person, if not already maxed out as individuals.

6. Payment calculations to determine payment limit is equal to the SUM of:

• Part 1: Cattle sold between Jan. 15 – April 15, 2020, multiplied by payment rate
  • Feeder cattle less than 600 lbs. = $102/head
  • Feeder cattle 600 lbs. or more = $139/head
  • Fed cattle = $214/head
  • Mature cattle for slaughter = $92/head
  • All other cattle = $102/head
• Part 2: Unpriced cattle inventory between April 16 – May 14, 2020, multiplied by payment rate
  • Feeder cattle less than 600 lbs. = $33/head
  • Feeder cattle 600 lbs. or more = $33/head
  • Fed cattle = $33/head
  • Mature cattle for slaughter = $33/head
    
  • All other cattle = $33/head

7. Initial payments: USDA will issue an initial payment equal to 80% of the total amount calculated in Parts 1 and 2. If funds remain available after the initial payment, USDA will disperse the remainder of available funding.

8. Supporting documentation: If requested by USDA, the applicant must provide documentation to (a) prove marketing of commodity, (b) inventory of livestock, (c) share of ownership, or (d) establish applicant’s value at risk in the commodity.

9. Issue with definition of fed cattle: The rule includes a definition “Slaughter Cattle -- fed cattle means cattle with an average weight in excess of 1,400 pounds which yield average carcass weights in excess of 800 pounds and are intended for slaughter.” On May 19, USDA Undersecretary Bill Northey said, “The intention here is to look at market cattlethat were sold...certainly some market cattle do not average 1,400 pounds when you are selling them.” He went on to explain that it will be a self-certification and mentioned a 1,250-pound steer as an example of being in the slaughter cattle -- fed cattle category.

If you have any questions, please contact Ben Weinheimer at ben@tcfa.org or (806) 358-3681.