Throughout the COVID-19 pandemic, our nation’s way of life has been disrupted. Businesses shuttered, employees were laid off, and supply chains broke down, affecting just about every industry, including agricultural.
That’s why the Coronavirus Food Assistance Program (CFAP) was set up. This program provides financial support to producers of agricultural commodities who suffered losses due to the COVID-19 pandemic.
Am I Eligible for CFAP?
To be eligible for CFAP, you must be a farmer or producer of agricultural commodities who suffered at least a 5% price decline from mid-January 2020 to mid-April 2020. Producers of these commodities who had losses due to market supply chain disruptions due to COVID-19 and face additional significant market costs are also eligible.
Additionally, you must be a person or legal entity with an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017, and 2018. However, if 75% of your AGI comes from farming, ranching, or forestry, then the AGI limit of $900,000 does not apply.
Eligibility for this assistance program extends to producers of the following agricultural commodities:
- Specialty crops like fruits, vegetables, nuts, and more
- Non-specialty crops like corn, oats, grains, and more
Further, producers of each type of commodity are subject to different and specific rules, so be sure to check out the official CFAP website for a complete list of eligible commodities and full eligibility regulations.
How Do I Apply for CFAP?
Applications should be submitted through your local Farm Service Agency (FSA) Service Center. USDA Service Centers are open, and applications can be submitted there, but they are open for business by phone appointment only. Meanwhile, the FSA is working on servicing applications over the phone, through email, and using online tools.
Applications can be submitted electronically to the FSA either by scanning, emailing, or faxing. However, you need to call your local FSA office before sending applications electronically.
What If I Have More Questions?
The above information is in no way exhaustive, so for additional assistance, visit the official CFAP website.
You can also reach out to your financial advisor to learn more about how you might be able to take advantage of this assistance program and how it can fit into your comprehensive financial plan.
CFP®, CRPC®,* MBA, Series 7, 24 & 63 Securities Registrations¹ With almost three decades of experience in the wealth management industry, Vince's depth of expertise helps give confidence and clarity to his clients. He joined Wealth Enhancement Group through the 2018 partnership with Cimino Wealth Advisors. Vince specializes in working with individuals interested in retirement and post-retirement distribution planning needs. He takes into account not only the accumulation of funds, but also...Read More