USDA May Have Additional Resources for CFAP 2.0
URBANA, IL – As the deadline to enroll in USDA’s Coronavirus Food Assistance Program (CFAP) nears (Friday, September 11, 2020), one ag policy expert believes the cost of the program will not equal the expected budget. That expert is Jonathon Coppess, a professor at the University of Illinois and former Administrator of USDA’s Farm Service Agency (FSA). Coppess writes that USDA projected making $16 billion in CFAP payments to farmers, as of two weeks ago payments were only 58 percent of the expected investment. The reason, he explains is due in part to payment limits that reduced projected cattle payments by 7 percent, dairy by 20 percent, and hogs and pigs by 40 percent. Another reason is that USDA may have over-projected the number of eligible commodities held on January 15th (as part of the CFAP requirement), thus providing an even greater amount of savings. These savings though may appear in another round of CFAP assistance which the Agriculture Secretary is expected to announce before October 1st, 2020.
(SOURCE: “CFAP Payments to Date and Possible Future Ad Hoc Farm Payments.” farmdoc daily)