The US Department of Agriculture (USDA), Farm Service Agency (FSA), will accept new and modified CFAP 2 applications beginning April 5, 2021.
Agriculture Secretary Tom Vilsack announced yesterday the U.S. Department of Agriculture will begin providing additional financial assistance to farmers, ranchers, and producers impacted by COVID-19 market disruptions. Resources for these payments were approved by Congress in fiscal years 2020 and 2021.
The original application period for CFAP 2 was September 21 through December 11, 2020. USDA will reopen CFAP 2 signup for all eligible producers beginning April 5, 2021. A deadline for signup will be announced at a later date. Learn more at farmers.gov/cfap.
Aquaculture eligible for CFAP 2 includes: any species of aquatic organisms grown as food for human consumption, fish raised as feed for fish that are consumed by humans, and ornamental fish propagated and reared in an aquatic medium. Eligible aquaculture species must be raised by a commercial operator and in water in a controlled environment. This includes molluscan shellfish and seaweed that was previously covered under the U.S. Department of Commerce program.
Eligible sales only include sales of raw commodities grown by the producer. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale is not included in the payment calculation.
CFAP 2 payments are available for eligible producers of aquaculture commodities, which are categorized as sales commodities. Payment calculations will use a sales-based approach, where producers of eligible commodities are paid based on five payment gradations associated with their 2019 sales.
CFAP 2 Payments for Aquaculture
FSA has updated the CFAP 2 payment calculation for aquaculture commodities to account for crop insurance indemnities and payments through the Noninsured Crop Disaster Assistance Program (NAP). This more accurately represents what a producer would have marketed if not for a cause of loss.
CFAP payments to aquaculture producers are now calculated using the producer’s eligible sales in calendar year 2019, and crop insurance indemnities and NAP payments for crop year 2019, multiplied by the applicable payment rate below. This may mean a higher payment for producers.
|2019 Sales Range||Percent Payment Factor for the Producer’s 2019 Sales of Eligible Commodities Falling in the Range|
|$0 to $49,999||10.6%|
|$50,000 to $99,999||9.9%|
|$100,000 to $499,999||9.7%|
|$500,000 to $999,999||9.0%|
|Sales over $1 million||8.8%|
Payments for aquaculture producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date.
Eligible sales only include sales of raw commodities grown by the producer. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, is not included in the payment calculation.
Example: A producer’s 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775.
Aquaculture producers who applied during the CFAP 2 sign-up period that closed December 11, and received insurance indemnities or NAP payments for the 2019 crop year, should contact their local USDA Service Center to modify their CFAP 2 applications. Insurance indemnities and NAP payments will be factored in for any aquaculture farmers applying for CFAP 2 for the first time when the application period opens on April 5.
Visit farmers.gov/cfap/apply to learn more about modifying your existing CFAP 2 application or submitting a new CFAP 2 application.
Additional CFAP Information
Visit farmers.gov/cfap for more information on the Coronavirus Food Assistance Program, including eligible commodities, producer eligibility, payment limitations and structure, and the latest program resources.