{"id":14245,"date":"2020-12-03T10:00:11","date_gmt":"2020-12-03T18:00:11","guid":{"rendered":"https:\/\/calcanstaging.kinsta.cloud\/?p=14245"},"modified":"2020-12-03T09:46:17","modified_gmt":"2020-12-03T17:46:17","slug":"is-covid-19-aid-reaching-farmers","status":"publish","type":"post","link":"https:\/\/calclimateag.org\/es\/is-covid-19-aid-reaching-farmers\/","title":{"rendered":"Is COVID-19 Aid Reaching Farmers?"},"content":{"rendered":"

This blog is from the\u00a0National Sustainable Agriculture Coalition (NSAC)<\/a>, of which CalCAN is a member. NSAC advocates for federal policy reform for the sustainability of food systems, natural resources, and rural communities. See the original post\u00a0aqu\u00ed<\/a>. The second round of applications for the\u00a0Coronavirus Food Assistance Program<\/a> (CFAP-2) are due by December 11,<\/strong> 2020<\/strong>. Farmers and ranchers, you can contact your local Farm Service Agency<\/a>\u00a0(FSA) Service Center to apply.\u00a0<\/em><\/p>\n

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The second iteration of the Coronavirus Food Assistance Program (CFAP-2) developed by USDA to help compensate farmers for losses due to the coronavirus pandemic is working much better and reaching more farmers than the first round of aid launched earlier this year. Since CFAP-2 opened to farmers on September 21, 2020 participation has been brisk and as the program application window has only one month left (closing December 11, 2020), it is time to revisit how the program is benefitting farmers, questions and concerns that have arisen, and if there are any lessons to draw upon for future aid to farmers as the pandemic continues to spread unchecked through most parts of the country.<\/p>\n

This blog will highlight some elements of CFAP-2 but for a far more authoritative treatment, please see the\u00a0Farmers\u2019 Guide to Coronavirus Food Assistance Program 2<\/a>\u00a0recently published by our colleagues at the\u00a0Farmers\u2019 Legal Action Group (FLAG)<\/a>.<\/p>\n

Who Is Benefitting?<\/strong><\/p>\n

The original\u00a0CFAP-1 program<\/a>\u00a0had\u00a0severe shortcomings<\/a>\u00a0but one in particular limited its utility for many farmers. CFAP-1 had a single payment option \u2013\u00a0the price loss payment<\/a>\u00a0\u2013 where farmers received a formula payment based on the national average price decline of a crop or commodity. The payment rates were extremely low and the number of commodities that were eligible was limited. While some payment rates were increased and the list of eligible commodities expanded over time, the basic formula remained.<\/p>\n

Because the formula employed a national average price decline to calculate payment rates, the checks farmers received did not necessarily reflect what they would have earned in their own market. This was especially true for farmers and ranchers that sold directly to their customers \u2013 restaurants, institutions, schools, and everyone at local farmers markets \u2013 as they often earn a price premium on these products. So too for producers of organic farm goods or any other products, such as pasture raised meats, that typically command a higher price compared to conventional products.<\/p>\n

By the time the CFAP-1 program ran its course,\u00a0651,099 farmers had received more than $10 Billion in payments<\/a>, but it was widely acknowledged that the primary beneficiaries were cattle producers ($4.3 Billion) while diversified specialty crop growers ($834 Million) came up short.<\/p>\n

This is where CFAP-2 is a marked improvement over CFAP-1. While CFAP-2 retains the price loss payment for some commodities (a major problem for producers that are still required to take this payment option because of the crops they grow) it also includes two new payment options for farmers \u2013 the flat rate and the sales commodities payment. The flat rate payment option pays $15 per acre and is targeted to a wide variety of small grains and other similar non-commodity row crops. This opened the program to many diversified small grain growers and oil seed producers who were excluded from CFAP-1.<\/p>\n

The more significant change was the addition of the sales commodity payment, which is open to producers of specialty crops, nursery crops, tobacco, some minor livestock species, and aquaculture products. This payment is\u00a0based on a producer\u2019s revenue\u00a0<\/strong>derived from those farm products in 2019 and mirrors the revenue based payment program proposed in\u00a0the Local and Regional Farmer and Market Support Act (Local Farmer Act)<\/a>, that was developed with support of NSAC and Coalition member the\u00a0Carolina Farm Stewardship Association<\/a>. This payment option has been especially important for diversified growers, farmers who grow organic or otherwise higher valued farm products, and producers who sell directly to their customers. Payments based on historic revenue, rather than wholesale price declines, better reflect farmers\u2019 real losses due to market disruptions.<\/p>\n

Nearly all crops and products not covered under the other two payment options are eligible for the sales commodity payment and although the payment rates are relatively modest (approximately 10%) they have been well received by diversified growers and specialty crop and livestock producers. With nearly a month left to sign up for the program, CFAP-2 has already paid\u00a0576,399 farmers more than $9.5 Billion in payments<\/a>, well ahead of the CFAP-1 program during the same time period.<\/p>\n

What is more telling is the distribution of those payments. While row crop and cattle producers continue to derive the greatest payments, specialty crop and specialty livestock payments have increased from $833 Million under CFAP-1 to $1.2 Billion under CFAP-2 and the rate of payments to farmers for eligible sales commodities continues to grow even as claims for other payments slow. This is particularly remarkable given that\u00a0early projections of CFAP-2 payments<\/a>\u00a0anticipated that specialty crops would likely receive only $313 million in payments.<\/p>\n

Are there problems with CFAP-2?<\/strong><\/p>\n

Yes, but there is progress. In the process of helping farmers understand CFAP-2 through\u00a0webinars<\/a>\u00a0and developing\u00a0supporting materials<\/a>, a number of questions and concerns have been raised about the structure and administration of the program. NSAC has worked with USDA to get answers to some of the farmer questions which are summarized below.<\/p>\n

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  1. Will farmers be required to obtain an FSA number to apply for CFAP-2?<\/li>\n<\/ol>\n

    Yes.<\/em>\u00a0An acreage report is required for the acreage-based assistance, which includes both price-trigger and flat rate payments. To file an acreage report, a farm must be established with FSA.<\/em><\/p>\n