CFAP Helps, But Falls Short of Assistance Needed

COLLEGE STATION, TX – While USDA is rolling out details of the $19 billion Coronavirus Food Assistance Program (CFAP), some are highlighting the need for Congress and the Department to rethink a few areas of concern. Dr. Bart Fischer, CO-Director of Texas A&M’s Agriculture and Food Policy Center points to three primary concerns that the agriculture industry is seeing. First, the program only provides assistance for crops held in inventory as of January 15th, so it will provide no assistance for the 2020 crop year. Second, while cattle producers were the biggest recipients of assistance, the support is significantly less than half of the damages estimated by industry. Finally, Fischer points to others along the supply chain that receive no direct benefits. After leaving the farm gate, for example, ethanol producers are not considered. In addition, he said, the merchandising supply chain for cotton, despite incurring significant carrying charges, logistical costs and market disruptions are not eligible for any relief.