10.02.20

Hoeven Reviews CFAP 2 With North Dakota Producers & FSA Administrator

Senator Secured $14 Billion in CCC Funding to Support Ag Assistance, Ensured CCC Replenishment in CR to Prevent Farm Bill Program Delays

WASHINGTON – Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and a member of the Senate Agriculture Committee, today held a virtual roundtable with North Dakota producers, commodity groups and Farm Service Agency (FSA) officials, including FSA Administrator Richard Fordyce, to review the details of the recently-announced Coronavirus Food Assistance Program (CFAP) 2 relief for farmers and ranchers. The program utilizes the $14 billion in Commodity Credit Corporation (CCC) funding Hoeven secured in the CARES Act and follows the senator’s efforts to ensure this funding was used to provide the additional assistance. In recent months, Hoeven raised this priority with numerous officials in the White House and at the U.S. Department of Agriculture (USDA), outlining the needs of North Dakota farmers and ranchers.

“This assistance is critically needed in farm country to help our producers overcome the real challenges they face and to continue providing the high quality, affordable food supply our nation relies on every day,” said Hoeven. “That’s why, time and again, we stressed to the administration the need to direct this $14 billion of CCC funding from the CARES Act toward an additional assistance program for farmers and ranchers. At the same time, including the full CCC reimbursement in the CR was another key step in this process, as it enables Farm Bill programs to operate without delay. With CFAP 2 signup now underway, this direct input from our state’s producers to Administrator Fordyce will help ensure this program serves our farmers and ranchers as effectively as possible. We appreciate the Administrator’s participation today, as well as USDA’s continued work to support farm country.”

Ag Assistance Details 

CFAP 2 provides coverage for non-specialty crops, livestock, dairy and specialty crops. Sign-up for the program runs until December 11, 2020. CFAP 2 includes the following three categories of payments:  

Price Trigger Commodities

  • Includes commodities that experienced a 5% or greater price decline over a specified period of time.
  • For non-specialty crops, producers will receive a payment based on the greater of:
    • Eligible 2020 acres multiplied by $15 per acre, or
    • Eligible 2020 acres multiplied by a specific crop-rate, multiplied by a nationwide crop marketing percentage, based on a producers weighted 2020 actual production history (APH). 
  • For livestock, producers will receive a per head payment for marketable livestock held in inventory from April 16 to August 31. 

Flat Rate Commodities

  • Includes commodities that did not experience a price decline or lacked sufficient data to prove a decline.  
  • Producers will receive a payment of $15 per acre based on 2020 acres for commodities in this category.

Sales Commodities

  • Includes specialty crops, specialty livestock and other commodities not included in previous categories for which a price decline could not be calculated.
  • Producers will be compensated for 2020 revenue declines, based off of a portion of their 2019 sales.

Payments will be subject to payment limitations and adjusted gross income restrictions. Additional information on the CFAP 2 is available from USDA at www.farmers.gov.

CCC Reimbursement 

In addition, Hoeven worked to include a full reimbursement of the CCC in the continuing resolution passed by Congress and signed into law this week to ensure producers don’t face delays in vital Farm Bill programs, including:

  • Agriculture Risk Coverage (ARC).
  • Price Loss Coverage (PLC).
  • Marketing Assistance Loans.
  • Sugar Loans.
  • Livestock Forage Program.
  • Livestock Indemnity Program.

On multiple occasions, Hoeven led his farm state colleagues in urging support for the CCC reimbursement on the Senate floor, citing a letter signed by more than 40 farm groups calling for funding the CCC.  

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