Food producers encouraged to apply for assistance program

Doug Miyamoto, Director of the Wyoming Department of Agriculture, announced last week that applications are now being taken for the Coronavirus Food Assistance Program (CFAP), an initiative that aims to support farmers and ranchers whose operation has been impacted by the pandemic.

Unlike some programs initiated by the CARES Act, Miyamoto said, this one is designed specifically for ag and provides “an avenue for direct payments”.

COVID-19 has disrupted domestic and international markets, he said, and we have all watched what’s happened with meat plants. On the other hand, said Miyamoto, “This pandemic has also shined a bright light on the importance of the agriculture industry.”

CFAP is open to producers of agricultural commodities who have suffered a price decline of 5% or greater or who have experienced losses due to market supply chain disruptions due to COVID-19 and face additional significant market costs.

“I’m very happy that USDA has made these funds available to our producers here in Wyoming,” Miyamoto said, stating that the fallout from the pandemic may just be starting for the ag industry and could hit again in the fall.

Payments up to $250,000 are available for persons and legal entities, with corporations, limited liability companies and limited partnerships eligible for up to $750,000 based on the number of shareholders (up to three) who contribute at least 400 hours of active labor.

Eligible commodities include livestock, wool, dairy, non-specialty crops such as corn, oats, sunflowers and durum wheat and specialty crops including many fruits and vegetables, certain nuts and beans and mushrooms.

Eligibility also requires an average adjusted gross income of less than $900,000 for tax years 2016-18 (unless 75% of that comes from farming, ranching or forestry).

To make sure funding is available throughout the time that applications are open, producers will receive 80% of their maximum total payment on approval and the remainder at a later date as funds remain available.

Certain commodities did not suffer a price decline over 5% and are therefore not eligible. However, USDA has said it may reconsider if there is credible evidence of a price decline. Miyamoto noted last week that crops currently not considered eligible can be evaluated on a case by case basis, so producers should contact the Farm Services Agency to start that process.

Applications opened last week and will be open until August 28. A total of $16 billion has been made available across America, said Miyamoto, and Wyoming producers are strongly encouraged to apply.

To find out more, visit Farmers.gov/cfap.