USDA announces details of the Coronavirus Food Assistance Program (CFAP)

By Hunter Moorhead, Legislative Consultant

On April 17, 2020, Agriculture Secretary Sonny Perdue announced that USDA will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities to fund the Coronavirus Food Assistance Program (CFAP). The program includes two major elements.  Secretary Perdue provided the following details about the program aimed at assisting farmers and ranchers as they struggle from the effects of the pandemic:

$16 billion in direct payments for farmers and ranchers: funded using the $9.5 billion emergency program in the CARES Act and $6.5 billion in Credit Commodity Corporation (CCC) funding. The program will provide direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.

  • $9.6 billion for the livestock industry
    • $5.1 billion for cattle
    • $2.9 billion for dairy
    • $1.6 billion for hogs
    • $3.9 billion for row crop producers
    • $2.1 billion for specialty crops producers
    • $500 million for other crops

Producers will receive a single direct payment determined using two calculations:

  • Price losses that occurred January 1-April 15, 2020. Producers will be compensated for 85% of price loss during that period.

  • Second part of the payment will be expected losses from April 15 through the next two quarters and will cover 30% of expected losses.

  • The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity. Qualified commodities must have experienced a 5% price decrease between January and April.

  • USDA is expediting the rule making process for the direct payment program and expects to begin sign-up for the new program in early May and to get payments out to producers by the end of May or early June.

$3 billion in purchases of agriculture products: including meat, dairy and produce to support producers and provide food to those in need. USDA will partner with local food and regional distributors to deliver food to food banks, as well as community and faith-based organizations to provide food to those in need.  USDA will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to be distributed by these partner organizations to those in need.

USDA will also utilize other available funding sources to purchase and distribute food to those in need:

  • USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs.

  • The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.

President’s Message for March 22, 2020

Greetings NASCOE Members,

It’s hard to describe what a confusing and stressful time these last couple of weeks have been for all of us.  The news concerning the COVID-19 Pandemic has turned ever more alarming and I’m sure I’m not alone in saying that this has created lots of anxiety.  We find ourselves worried about interactions with our producers, our co-workers, and even our high-risk family members.  As USDA has been balancing service to our producers with employee health and safety, concerns have rapidly mounted.  We have been working with FSA leadership to share these worries and issues and would like to take some time now to share where we are today.

The absolute greatest concern we all have is for the health and safety of ourselves, our families, and our producers.  All week long, CED’s and PTs have been calling, e-mailing, and texting NASCOE representatives conveying concerns about interacting with the public in our offices and we in turn have shared these concerns with management.  The Department initially responded by implementing a screening tool to try and assess our producers before they entered our offices.  As this became inadequate, we shifted to limiting visitors.  Now, beginning this week, FSA will be prohibiting visitors from entering any USDA Service Center.  As the calls for social distancing increased, NASCOE also heard worries about whether employees would be safe amongst themselves in the same building.  We shared these concerns with leadership as well.  Beginning this week, FSA will be limiting the number of employees in the service center to decrease our possible exposure with each other.  Alternative working arrangements may be made for employees who have dependents at home or who certify to being high-risk.

Of course, prohibiting visitors and limiting employees in the Service Center influences customer service.  Agriculture is integral to our survival and it is critical that USDA continues to serve our producers to the greatest extent possible.  We also know from feedback that we heard during the recent government furlough that everyone wants to continue to work rather than fall further behind.  To meet this need, the agency is authorizing FSA employees to telework in certain circumstances.  We know this involves being both telework ready and having meaningful work that can be done remotely.  Telework is relatively new to most of us and we know there are a lot of questions on how this will work.  Once again, we have been sharing these concerns with management.  New telework arrangements won’t be ideal or efficient, but they do present some opportunities to continue servicing our producers during this very tough agricultural climate.  More important, it is good to know we can service our producers and feel safer than we did a week ago.  For those employees who are directed to be out of the office but can’t telework, administrative weather and safety leave is available. 

Finally, the situation has been changing very rapidly.  We are aware that not every employee in every state is receiving the same message.  We have expressed to management the importance of consistent communication.  Last Friday, FSA held a conference call for all employee associations.  This call was very much appreciated by the NASCOE leadership.  NASCOE members should be receiving these notes via email shortly.  The agency has also committed to having more of these conference calls as the situation changes.  Questions about the new status of FSA employees are common and, in some cases, folks are still looking for answers.  In an effort to respond to our membership’s needs during this challenging time, NASCOE has put together a page on our website to provide information about policy that management has presented to state offices.  On this page you will find guidelines, notes, frequently asked questions, updates on agency actions and links to websites.  This page will be continually updated with new information.  You can find this website at:  https://nascoe.org/nascoe-covid-19-resources/

NASCOE stands ready to help its members and looks forward to hearing your comments concerns as this unprecedented situation moves forward.

NASCOE President Brandon Wilson Contact information

COVID-19 Impacts on NASCOE Events

Many of you have been watching the news and following the development of the Coronavirus, otherwise known as COVID‑19.  In just the last few days, we’ve seen many events get cancelled, such as the Farm Bureau Leadership Conference in Kentucky and the Houston Livestock show and Rodeo.  Sporting leagues are canceling games or ending their seasons early.  These cancellations are disruptive and inconvenient, but they are being cancelled out of an abundance of caution for everyone’s safety.  NASCOE and our affiliates are unfortunately required to make similar difficult decisions.

We encourage you to read the following important update on NASCOE Events from NASCOE President, Brandon Wilson.   

The NASCOE Leadership team anticipates updating membership with additional information as the status of the COVID-19 outbreak evolves.

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