Coronavirus Food Assistance Program Direct Payment Information Announced Today

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Details have been published about the direct payments associated with the Coronavirus Food Assistance Program (CFAP) through USDA. A quick summary follows:

  • CFAP payments are eligible to all dairy operations with milk production in January, February, and/or March 2020.
  • Any dumped milk production during the months of January, February, and March 2020 is eligible for assistance.
  • However, any milk production priced under a forward contract for any time during January, February, and/or March is ineligible.

For dairy, a single payment will be made based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by $4.71 per hundred weight. The second part of the payment is based a national adjustment to each producer’s production in the first quarter multiplied by $1.47 per hundred weight.

A single payment for dairy will be made calculated from two funding sources. Those include:

  • CARES Act – The payment will compensate producers for price losses during the first quarter of 2020, and
  • CCC Funds – The payment will compensate for marketing channel and demand disruptions for the second quarter of 2020 – April, May, and June – due to COVID-19.

USDA will begin accepting applications for CFAP on May 26, 2020. As you know, FSA offices are currently only open for business by phone appointments. Call your local FSA office to schedule a CFAP signup appointment once the signup period begins on May 26. Schedule your appointment sooner than later; like other COVID-19 relief programs, you want to be in the front of the line!

Visit the CFAP website for full details and more information.