MAC is working to provide helpful information in one spot related to the Coronavirus Food Assistance Program (CFAP). This page will be updated next week when the spreadsheet is available from the FSA.
At this time, you can learn more with the CFAP Calculator Preview video from the USDA below. We also have provided summary from our team after the video.
by: Kaylyn Turland
This week the USDA released more information regarding the CARES Act and “Coronavirus Food Assistance Program”. Starting May 26th producers will be able to apply for direct payments. Quoted from the USDA website, “Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A single 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, multiplied by the commodity’s applicable payment rates.” This payment is intended for producers who have inventory that does not have a pricing component attached to it as of January 15, 2020.
For producers to be prepared to file you will need to provide your total 2019 production and your total 2019 production that was not sold as of January 15, 2020. Your MAC Merchandiser will be able to help with any inventory that you may have with us that is eligible. Once you are ready to file between May 26th and August 28th go to farmers.gov/cfap and upload the payment calculator. On this sheet you will fill in your personal information along with the 2019 production information. You will then print and sign this form and send it to your local FSA office. A video in the newsletter will provide further guidance. At this time, the Farm Service Agency is not taking in- person appointments but will be more than happy to help you over the phone.
Once you have your total 2019 production and your inventory total you are able to calculate your payment. Through the CARES Act, the corn payment rate is $0.32/ bushel and soybeans is $0.45/ bushel. Additionally, the CCC will provide $0.35/ bushel for corn and $0.50/ bushel for soybeans. Together the payment for corn is $0.67/ bushel and $0.95/ bushel for soybeans. To calculate the payment pick the lower of the two, (total production or inventory) and multiply by the CARES payment and divide by two. Do the same with the CCC payment. Add those two together and you will have your total Coronavirus Food Assistance Program payment. Below is a corn example.
|2019 Total Production||2019 Production Not sold as of (01/15/20)||Estimated CARES Gross Payment||Estimated CCC Gross Payment||Estimated Total Payment|
40,000 bu. X 0.32/2= $6,400
40,000bu. X 0.35/2= $7,000
This payment is one of the many tools that will help producers during these uncertain times. Stacking prices, government payments and crop insurance payments together will be what it takes to weather this storm. It is crucial we take advantage of all cash flow opportunities that become available to producers. Your MAC team is here to help during these trying times.