CFAP: How payments are made to non-specialty crop producers and reaction from industry leaders


The NCGA welcomed additional information from the Trump Administration on the $16 billion in assistance from the Coronavirus Food Assistance Program, which will help farmers and their customers recover from the financial burden the COVID-19 outbreak has put on them. USDA’s Farm Service Agency will start accepting applications from eligible producers on May 26.

Non-specialty crops producers will be paid based on inventory subject to price risk held as of January 15, 2020. Payment will be made based on 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller. That number will be multiplied by the commodity’s applicable payment rates.

“The COVID-19 pandemic has led to much uncertainty across farm country,” said NCGA President Kevin Ross. “This assistance is a first step to getting farmers, and our customers, back on solid footing.”

Recent analysis conducted by NCGA underscores the need for the assistance outlined by the President today. The analysis projects a $50 per acre average revenue decline for the 2019 corn crop with losses anticipated to be higher for the 2020 crop as two of corn’s largest uses, livestock feed and ethanol, have been especially impacted by COVID-19.

“Corn farmers are used to uncertainty and have been leaders in developing strong risk management tools to help farmers stay afloat during tough times, but the COVID-19 pandemic is unlike anything we’ve experienced before,” said Ross. “NCGA thanks the Administration for their quick action to develop and implement this important program and address the challenges currently facing farmers.”