CFAP Payments Halted Until Review Conducted by Biden Administration

by David Marrison, OSU Extension

In accordance with the Regulatory Freeze Pending Review memo issued by the White House on January 20, the United States Department of Agriculture has suspended the $2.3 billion of additional assistance to the Coronavirus Food Assistance Program put in place during the final days of the Trump Administration.

The Trump administration had previously announced on January 15 providing additional assistance of CFAP expanding eligibility for some agricultural producers and commodities as well as updating payments to accurately compensate some producers who already applied for the program.  The expanded eligibility was targeted primarily for contract pork and poultry producers and others previously excluded from the relief payments.

It should be noted that Farm Service Agency offices will continue to accept applications during the evaluation period although no payments will be made while the program is reviewed. The supplemental CFAP payments (January 15 additional assistance) were to build upon the $23.6 billion in assistance provided in Round 1 and 2 of CFAP. USDA’s Farm Service Agency will still continue to accept new or modified CFAP applications from eligible producers January 19 through February 26, 2021.

In a notice on the Farm Service Agency website the Biden administration stated “In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources.”

Farm Office Team Note: It is not irregular for a new Presidential Administration to freeze rule making at the start of their administration as the transition occurs from one administration to the next.  Our team will be monitoring the situation and will provide updates.  Make sure to register for the next Farm Office Live webinars on February 10 & 12 at which time updates will be given on this issue and many more.  Register at: https://farmoffice.osu.edu/farmofficelive

Sources:

Coronavirus Food Assistance Program – Additional Assistance.  Access at: https://www.farmers.gov/cfap

Regulatory Freeze Pending Review.  Access at: https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/regulatory-freeze-pending-review/

USDA Offers Additional Assistance for Certain Producers Through Coronavirus Food Assistance Program https://www.usda.gov/media/press-releases/2021/01/15/usda-offers-additional-assistance-certain-producers-through

 Applications Being Accepted for FSA Quality Loss Adjustment Program

by: Mary Griffith, Extension Educator, ANR & Chris Zoller, Extension Educator, ANR

The Farm Service Agency (FSA) began accepting applications this week for the Quality Loss Adjustment (QLA) Program.  QLA will assist producers whose eligible crops suffered quality losses due to qualifying drought, excessive moisture, flooding, hurricanes, snowstorms, or tornadoes occurring in calendar years 2018 and/or 2019.  Applications are being accepted until March 5, 2021.

Who is Eligible?

To be eligible for payments, producers must:

  • Be entitled to an ownership share and be at-risk in the agricultural production and marketing of crops on the farm; and either
  • Have an average federal tax adjusted gross income (AGI) of less than $900,000 for tax years 2018 and 2019; or
  • Derive at least 75 percent of their AGI from farming, ranching or forestry-related activities;
  • Have control of the acreage on which the crop was grown at the time of the disaster;
  • Comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions;
  • Not have a controlled substance violation; and
  • Be a citizen of the United States or a resident alien.

Eligible Crops

Crops that can be covered by federal crop insurance or the Noninsured Crop Disaster Assistance Program (NAP) are generally considered eligible for this program.   To be eligible for the program, a crop must have:

  • Suffered a quality loss due to a qualifying disaster event and
  • Had a five percent-or-greater quality discount due to the qualifying disaster event.

Eligible crops may have been sold, fed on-farm to livestock, or may be in storage at the time of application.

Ineligible Crops

Crops that were destroyed before harvest are not eligible for QLA. Crops that experienced loss after harvest, due to deterioration in storage or that could have been mitigated, are not eligible for QLA. Finally, crops whose losses have already been compensated by Federal crop insurance, NAP or the Wildfire and Hurricane Indemnity – Plus (Whip+) program are not eligible.

The following crops are also ineligible:

  • Grazed crops
  • Honey
  • Maple sap
  • Aquaculture
  • Floriculture
  • Mushrooms, ginseng root
  • Ornamental nursery
  • Sea grass and sea oats
  • Christmas trees, and
  • Turfgrass sod.

Applying for the QLA Program

To apply, participants must file one application (FSA898) that includes all eligible crops that suffered a quality loss. Losses sustained in more than one crop year require a separate application for each crop year. When applying, producers must provide verifiable documentation to support claims of quality loss or nutrient loss, in the case of forage crops.

FSA calculates QLA payments using formulas for the type of crop (forage or non-forage) and the loss documentation submitted. Payments are based on the producer’s own individual loss or based on the county’s average loss.

For crops that have been sold, grading must have been completed within 30 days of harvest, and for forage crops, a laboratory analysis must have been completed within 30 days of harvest.

Some acceptable forms of documentation include:

  • Sales receipts from buyers
  • Settlement sheets
  • Truck or warehouse scale tickets
  • Written sales contracts
  • Similar records that represent actual and specific quality loss information
  • Forage tests for nutritional values

All producers receiving QLA payments are required to purchase crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher. If eligible, QLA participants may meet the insurance purchase requirement by purchasing Whole-Farm Revenue Protection coverage offered through USDA’s Risk Management Agency.

Where to Apply

If you are interested in applying for the QLA Program, please call your local Farm Service Agency office.  USDA Service Centers are open for business, but no walk-in appointments are allowed, so remember to call ahead to schedule an appointment.

FSA set up a call center in order to simplify how serving customers across the nation. This call center is available for producers who would like additional one-on-one support with the QLA application process. Please call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. Additional information about the program is available here: https://www.farmers.gov/quality-loss.

 

 

 

Agricultural Risk Coverage and Price Loss Coverage for the 2021 Crop Year

by: Mary Griffith, Chris Zoller, Hallie Williams, OSU Extension Educators

Enrollment for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2021 crop year opened in October, with the deadline to enroll and make amendments to program elections on March 15, 2021. This signup is for potential payments for the 2021 crop.

If changes are not made by the March 15th deadline, the election defaults to the programs selected for the 2020 crop year with no penalty. While it is optional to make changes to program elections, producers are required to enroll (sign a contract) each year to be eligible to receive payments. So, even if you do not change your program elections, you will still need to make an appointment at the Farm Service Agency to sign off on enrollment for the 2021 crop year by that March 15th deadline.

Producers have the option to enroll covered commodities in either ARC-County, ARC-Individual, or PLC. Program elections are made on a crop-by-crop basis unless selecting ARC-Individual where all crops under that FSA Farm Number fall under that program. These are the same program options that were available to producers during the 2019 and 2020 crop years. In some cases producers may want to amend program election to better manage the potential risks facing their farms during the 2021 crop year.

As you consider amending your program choices, here are some important reminders:

  • PLC payments are triggered by low prices. PLC is a disaster price program and pays when the marketing year average price is below a reference price. The marketing year average price (MYAP) is an average price calculated using cash prices across the nation over the course of a year. The 2021 marketing year for wheat is May, 2021 – June, 2022 and for corn and soybeans is August, 2021 – September, 2022. This means that the MYAP for 2021 for wheat will not be known until June, 2022 and the MYAP for corn and soybeans will not be known until September, 2022. PLC payments will only be triggered for a covered commodity if the MYAP published at the end of the marketing year are below the reference price. The reference price for corn is $3.70, for soybeans is $8.40, and for wheat is $5.50.
  • ARC-County payments are triggered by low county revenues. Revenues are calculated using the market year average price times the county average yield. When producers enrolled for 2019 and 2020, they were enrolling after the 2019 crop had been harvested. Yields for 2019 were known at the time of the enrollment deadline for that year. For the 2021 crop year, producers will be enrolling before the crop is planted.
  • Producers have less information about both price and yields for the 2021 enrollment period, compared to the last enrollment period. When producers enrolled for 2019 and 2020, we were more than halfway through the marketing year for each crop, so there was much more information on price expectation. For the 2021 crop year, producers will be enrolling before the marketing year begins.
  • The maximum ARC-IC payment is triggered in cases where an FSA Farm has 100% Prevent Plant acres. At the time of enrollment for the 2019 crop year, producers knew if they had FSA Farms that fit this description and were able to use that information to decide if ARC-IC was a good fit for a FSA Farm. For the 2021 crop year, producers will need to decide by March 15th if ARC-IC is still the right choice for those farms without knowledge of how many acres they will have in Prevent Plant. While some FSA Farms triggered large payments for ARC-IC in 2019, producers may want to re-assess this program election for the 2021 crop year if they do not expect to put those farms in 100% Prevent Plant in 2021.

For most producers, the number one consideration driving program election is the markets. What are markets going to do? We will not know the MYA price for corn or soybeans until September of 2022, and a lot could change in that time.

OSU Extension and the Department of Agricultural, Environmental and Development Economics (AEDE) are offering several webinars between now and the March 15th enrollment deadline for producers to get up to date market outlook information. For information about AEDE’s 2021 Winter Outlook Meetings, visit https://aede.osu.edu/research/agricultural-policy-and-outlook-conferences/county-meetings.

Additionally, OSU Extension will be offering two webinars this winter focused specifically on the ARC/PLC decision, reviewing decision-tool calculators available to evaluate options, and current market outlook. The dates for these webinars are January 13th from 1:00-3:00 pm and February 25th from 9 -11 am. Both programs are free to attend, but registration is required. Register online at: http://go.osu.edu/arcplc2021.

FARM OFFICE LIVE WINTER EDITION

by: Barry Ward, David Marrison, Peggy Hall, Dianne Shoemaker – Ohio State University Extension

“Farm Office Live” returns virtually this winter as an opportunity for you to get the latest outlook and updates on ag law, farm management, ag economics, farm business analysis and other related issues from faculty and educators with the College of Food, Agriculture and Environmental Sciences at The Ohio State University.

Each Farm Office Live will start off with presentations on select ag law and farm management topics from our experts and then we’ll open it up for questions from attendees on other topics of interest.  Viewers can attend “Farm Office Live” online each month on Wednesday evening or Friday morning, or can catch a recording of each program. The full slate of offerings for this winter:

January 13th 7:00 – 8:30 pm

January 15th 10:00 – 11:30 am

February 10th 7:00 – 8:30 pm

February 12th 10:00 – 11:30 am

March 10th 7:00 – 8:30 pm

March 12th 10:00 – 11:30 am

April 7th 7:00 – 8:30 pm

April 9th 10:00 – 11:30 am

Topics to be addressed this winter include:

  • New COVID Related Legislation – Consolidated Appropriations Act, 2021
  • Outlook on Crop Input Costs and Profit Margins
  • Outlook on Cropland Values and Cash Rents
  • Outlook on Interest Rates
  • Tax Issues That May Impact Farm Businesses
  • Legal trends for 2021
  • Legislative updates
  • Farm business management and analysis updates
  • Farm succession & estate planning updates

Who’s on the Farm Office Team?  Our team features OSU experts ready to help you manage your farm office:

  • Peggy Kirk Hall — agricultural law
  • Dianne Shoemaker — farm business analysis and dairy production
  • David Marrison — farm management
  • Barry Ward — agricultural economics and tax

Register at  https://go.osu.edu/farmofficelive

We look forward to you joining us this winter!

Farm Management Needs Pulse Survey

The Ohio State University Extension Agriculture and Natural Resources program works to improve production and maximize profitability while promoting environmental stewardship.

We are reviewing our farm management resources and ask you to rank your “top 3” areas from the following list for your farm management needs and support wanted.

  1. Agricultural Finance: farm income, farm business analysis, financial management, budgeting, and investing, agricultural taxes, benchmarking, record keeping
  2. Agricultural Human Resources: farm succession planning, labor law and policy, human resource management/labor management, liability
  3. Agricultural Law: legal issues within the agriculture system and estate planning
  4. Agricultural Marketing: marketing and price analysis, commodity trading
  5. Agricultural Policy: Farm Bill/Agricultural Policy, environmental and resource policy agricultural trade
  6. Agricultural Production and Risk Management: risk evaluation and management, land use, crop and livestock production, crop and livestock insurance
  7. Agricultural Supply Chain Stability and New Market Access: stability of upstream and downstream supply chains during disruptions, identifying new markets
  8. Rural and Community Development: infrastructure – broadband access, community resources, health care, non-agricultural small business support; rural/urban interface

Please complete the survey at: https://go.osu.edu/FarmMgmtNeeds by December 18, 2020.

Thank you.

Dairy Risk Management Series Offers a Range of Important Information to Producers

By Ben Brown, Dianne Shoemaker and Chris Zoller

Offered in three sessions during November, OSU Extension, in partnership with the Ohio Dairy Producers Association, delivered a dairy risk management webinar series covering three important topics: milk pricing and producer price differentials, outlooks for domestic and international milk product markets, and dairy risk management tools. Slides and recordings for all presentations can be found at https://farmoffice.osu.edu/events/archived-videos.

Session one was presented by Mark Stephenson from the University of Wisconsin discussing milk pricing and producer price differentials. Due to COVID-19 disrupting supply chains and a change in the 2018 Farm Bill using the average of Class III and Class IV milk prices instead of the higher of the two to set Class I milk prices, Ohio dairy producers experienced several months of historically large negative producer price differentials. According to Dr. Stevenson, these negative PPDs could continue for a couple more months and producers need to be aware of these when making business planning decisions. Dr. Stephenson’s presentation can be found at https://studio.youtube.com/video/fpGfd5c0pi4/edit.

Session two highlighted domestic and international markets. William Loux from the U.S. Dairy Export Council started off the session with a presentation on dairy supply and demand outside the United States. International demand for US dairy products is up in 2020 driven primarily by China and the Middle East/ North Africa Region. Southeast Asia also saw large year over year increases in dairy product imports. Loux pointed out there are a couple things to watch for in the next couple of months: COVID-19 resurgence, Brexit and the ability to trade with England, and the subsidization of dairy exports by India. He concluded by saying it is a good sign that the US continues to export dairy products in strong numbers even with US dairy prices above world dairy prices. His session can be found at https://www.youtube.com/watch?v=fJsHMSkcHVc

Also in session two, Mike McCully from the McCully Group provided price expectations for US dairy markets over the next 12 months. Key points from his presentation included product specific outlooks with cheese prices being strong on solid demand, butter prices being extremely weak on burdensome supplies and milk prices being relatively stable. He continued that the outlook is mixed, with dairy markets having a bearish tone heading into the first quarter of 2021 on growing milk supplies and concerns over demand, but the second half of 2021 being more bullish given an expected reduction in milk supply growth and possible demand improvements. Mike’s full presentation can be found at https://www.youtube.com/watch?v=NAy6Xy-Nb7s&t=119s

Session three focused on risk management tools for dairy producers. OSU Extension Educator Chris Zoller provided an overview of USDA’s Dairy Margin Coverage program, which is authorized through the Farm Bill every year. Producers wishing to sign up for DMC need to contact their FSA office prior to December 11 to enroll for 2021. Chris’ presentation can be found here: https://www.youtube.com/watch?v=ZR_4SukNX2I&t=24s

Dr. Kenny Burdine, Associate Extension Professor, University of Kentucky, also presented during session three.  Dr. Burdine discussed Livestock Gross Margin Insurance- Dairy and gave a brief overview of using futures and options in milk price protection. Dr. Burdine suggested USDA’s Dairy Margin Coverage Program as the first level of protection for smaller producers, with Livestock Gross Margin Insurance- Dairy being the second level of protection. Kenny’s presentation can be found here: https://www.youtube.com/watch?v=PdjEijnDCMw

Session three concluded with a presentation by OSU Extension Educator Jason Hartschuh on Dairy Revenue Protection Insurance offered through the Risk Management Agency. Jason reviewed six decisions for dairy producers to consider and provided examples of how to use the program. Additional information about this topic can be found at dairy@osu.edu under Dairy Revenue Protection. Jason’s presentation from the webinar series can be found at https://www.youtube.com/watch?v=B38TVJkrlQU

For any additional questions or thoughts for future risk management webinars please reach out to Ben Brown at brown.6888@osu.edu, Dianne Shoemaker at shoemaker.3@osu.edu, Chris Zoller at zoller.1@osu.edu or your local OSU Extension Office.

Agricultural Risk Coverage and Price Loss Coverage for the 2021 Crop Year

By Ben Brown, The Ohio State University

The 2018 Farm Bill reauthorized the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) safety net programs that were in the 2014 Farm Bill. Producers must enroll  in ARC/PLC for the 2021 crop year through their local Farm Service Agency office. Producers can amend the program elections they made for the 2019 and 2020 crop years for the 2021 crop year. The signup period for the 2021 crop year is open now, and the deadline to enroll and make amendments to program elections is March 15, 2021.

If changes are not made by March 15, 2021 deadline, the election defaults to the programs selected for the 2020 crop year with no penalty. Producers will have the opportunity to amend program elections again for the 2022 and 2023 crop years.

Producers again have the option to enroll covered commodities in either ARC-County, ARC-Individual, or PLC. Program elections are made on a crop-by-crop basis unless selecting ARC-Individual where all crops under that FSA Farm Number fall under that program. ARC program payments are made when crop revenue falls below a guaranteed level, while PLC payments are made when a crops specific effective price is lower than its reference price. These are the same program options that were available to producers during the 2019 and 2020 crop years. In some cases, producers may want to amend program election to better manage the potential risks facing their farms during the 2021 crop year.

On December 1, 2020 at 10:00 a.m. EST program directors from the Ohio Farm Service Agency and Ohio State University Extension will host a free informational webinar about ARC/PLC enrollment and election for the 2021 crop year. During this free 1-hour webinar, state leaders will cover program design, economic considerations and frequently asked questions. To make sure your question is addressed during the webinar, please send to Ben Brown at brown.6888@osu.edu or 660-492-7574 prior to December 1, 2020.

To register, visit: go.osu.edu/arc_plc

 

USDA Releases Projections of Farm Prices to 2030

by: Chris Zoller, Extension Educator, ANR in Tuscarawas County

The Unites States Department of Agriculture Economic Research Service (USDA-ERS) released their 10 year projection for farm commodity prices.  The projections offer a mixed outlook based on expected increases in demand, exports, and market conditions this year.  See Figure 1 for the USDA-ERS price projections for several U.S. farm commodities.  These projections are not inflation adjusted.

The projections are based on an assumed long-term global outlook that includes a recovery in income growth—beginning in 2021—from the declines that have occurred in most economies during 2020. The outlook for the U.S. economy, and for many important U.S. agricultural markets and competitors, however, remains uncertain.

Figure 1.  Projected changes in U.S. farm commodities, 2020-2030

Crops

Wheat and cotton are projected by USDA-ERS to show the strongest gains. Wheat prices are projected to rise as domestic and export demand begins to outpace domestic production.  In addition to the potential to capitalize on projected price gains, you may want to consider incorporating wheat into your rotation for soil health, disease management, and other reasons.   Modest changes in prices for U.S. corn and soybeans from current levels reflect the relatively steady demand for these products during 2020, together with the moderating influences of productivity gains and continued export competition.  If the corn and soybean price projections are true, should you continue to grow these crops?

Livestock

Farm prices of hogs, broilers, and eggs are projected higher by 2030, as economic recovery restores growth in domestic and export demand. U.S. beef cattle prices are expected to rise during the early years of the 10-year projection period, before declining somewhat as the multi-year cattle cycle and a longer-term trend of sluggish demand growth turn prices downward.  For those in the beef business, the overall projected negative price change should be of concern.  What can you do now to plan for a downward price trend?

Planning

This USDA-ERS release is a prediction of future prices based on two things: (1) information known today and (2) anticipated changes over time.  What will you do with this information?  How will this and other information impact how you chart the course of your business?  The weather is a topic all farmers want to discuss but cannot control.  Planning, however, is something all farmers can control.  Use the available information to help make educated decisions about the future of your farm.  Read and review information, meet with your lender, accountant, and Extension Educator.

Ohio State University Extension crop budgets are developed annually and are available at https://farmoffice.osu.edu/farm-mgt-tools/farm-budgets.  These Excel-based budgets include a column for users to input their own information to evaluate scenarios.

The FINPACK computerized program is used by Ohio State University Extension to help farmers evaluate business changes.  Depending upon the commodities you produce, now may be the time to re-evaluate your business model.  If this is you, the FINPACK program can be of great benefit.  Additional information is available here:  https://farmprofitability.osu.edu/.

Source

United States Department of Agriculture Economic Research Service, Economic recovery, competition shape projections of U.S. farm prices to 2030. November 6, 2020.  Available at: https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=99758

 

Freezer Beef Sales Explode During Covid19 Pandemic……Will Your Customers Be Ready to Buy Again?

by: Mike Estadt, OSU Extension Educator

It is well documented that early in the coronavirus pandemic, major meat processing facilities across the United States became supply bottlenecks due to employee infections shutting down production.  In response to seeing less meat available in the retail case, or limits on the amount of proteins that a consumer could purchase, farm raised, direct marketed meat, especially beef, experienced high demand.

Today it is still unlikely that you can schedule the processing of a steer until the early part of 2021.  Due in part to limited space in coolers and limited workers skilled in meat processing, both custom and inspected processing facilities are struggling to meet the demand of producers wanting beef processed for direct sales to consumers.

Where is the beef supply currently and what can the consumer and local producer expect to see in the retail sector of the beef business?  Cattle coming to market are heavier, thus producing more retail product to be marketed.  Where is this beef going?  98% of beef is marketed as chilled fresh meat and the remaining 2%, mostly boneless beef trimmings and end meats, is put into commercial warehouses.  The latest USDA report indicates the total pounds of beef in cold storage were up 5% from the previous month but down 2% from last year.

With the grilling season over more than likely freezer beef customers have exhausted their supply of steaks leaving them hamburger and roasts to eat this winter.   Maybe beef councils should try a promotion for crock pot roast beef parties.  Gee, it does not have the same appeal as “come over this weekend were grilling steak”.

With eroded demand from the restaurant sector and institutional buyers one might expect to see retailers trying to push the high valued cuts through the supply chain with weekly specials.  Such is the case.  On several recent shopping trips this author has observed and purchased the following in near “hoarding” proportions.  YOUR freezer beef customers may be doing the same.

Certified Angus Beef (CAB) Boneless Ribeyes       $9.99/lb

CAB Porterhouse Steaks                                           $9.99/lb

CAB Chuckeye Roast                                                  $2.99/lb

CAB Ground Chuck (3lb package)                            $2.99/lb

Most spring born calves are weaned, preconditioned and may or may not be marketed.  Some may be held back to finish out for freezer beef enterprises.  Will you be able to sell as much as you did this past year, especially producers selling halves and whole beeves?  (This is a $1200-$2500 purchase at current prices).

It may be a good time before the Holiday Season to do a quick survey of your customers to gauge how much beef they will need in the coming year.  It also a nice time to say THANK YOU.  It might be worth your time to drop a card or send an email to your beef customers to gauge the demand for next year.  I have seen some local beef producers with websites, putting up customer satisfaction surveys.  Doing this will also help you determine if you need to find additional customers to replace the whole beefs that become halves and the halves that become 1/4s.  It will more importantly help you with scheduling with your processor.

Coronavirus Food Assistance Program 2.0

by: Chris Zoller, Extension Educator, ANR, Tuscarawas County

Farmers are encouraged to contact their local Farm Service Agency (FSA) office to apply for the Coronavirus Food Assistance Program 2.0 (CFAP 2.0).  The application deadline is December 11, 2020. President Trump and USDA Secretary of Agriculture Sonny Perdue announced an expansion of the original CFAP intended to provide support to farmers who suffered losses because of the COVID-19 pandemic.  The following information is sourced from USDA and available at https://www.farmers.gov/cfap.

Eligibility

Any individual or legal entity who shares in the risk of producing a commodity may apply for CFAP 2. Producers must be in the business of farming and producing commercially produced commodities at the time of submitting their application to be eligible.  Commodities grown under a contract in which the grower has ownership and production risk are eligible for CFAP 2.

To be eligible for payments, a person or legal entity must have an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018. However, if 75 percent of their adjusted gross income (AGI) comes from farming, the AGI limit of $900,000 does not apply and the person or legal entity is eligible to receive CFAP 2 payments up to the applicable payment limitation.

Persons and legal entities also must:

  • comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions; and
  • not have a controlled substance violation.

Eligible Commodities

Commodities eligible for CFAP 2.0 include: row crops, wool, livestock, specialty livestock, dairy, specialty crops, floriculture and nursery, aquaculture, broilers and eggs, and tobacco.

Ineligible Commodities

Commodities not eligible for CFAP 2 include:

  • Hay, except alfalfa, and crops intended for grazing are ineligible for CFAP 2.
  • All equine, breeding stock, companion or comfort animals, pets, and animals raised for hunting or game purposes.
  • Birdsfoot and trefoil, clover, cover crop, fallow, forage soybeans, forage sorghum, gardens (commercial and home), grass, kochia (prostrata), lespedeza, milkweed, mixed forage, pelts (excluding mink), perennial peanuts, pollinators, sunn hemp, vetch, and seed of ineligible crops.

How to Apply

To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records. However, since CFAP 2 is a self-certification program, this documentation will not need to be submitted with the application. Because applications are subject to County Committee review and spot check, some producers will be required to provide documentation. Producers should retain the records and documentation they use to complete the application.

Applications can be completed online, manually, or through your local FSA office.  Additional information about the application, including a calculator, is available here https://www.farmers.gov/cfap.