Help Coming for Growers Through New USDA Assistance Program
April 20, 2020 In a statement released April 17, U.S. Ag Secretary Sonny Perdue announced a new $19 billion immediate relief program from USDA to provide support to farmers, ranchers and consumers in response to the COVID-19 national emergency.
The program – known as the Coronavirus Food Assistance Program (CFAP) – will provide support at the farm level, help maintain the integrity of the food supply chain, and ensure that every American continues to receive and have access to the food they need.
“The American food supply chain had to adapt, and it remains safe, secure and strong,” said Perdue, “and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.”
The program – which will use 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 – includes two major elements:
- $16 billion in direct support for farmers and ranchers to help cover actual losses where prices and market supply chains have been impacted. The funds will also assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply caused by COVID-19 for the 2020 marketing year.
- $3 billion for the purchase of fresh produce, dairy and meat by USDA in partnership with regional and local distributors whose workforce has been impacted by the closure of multiple food service businesses due to COVID-19. Those products will be packaged for distribution to food banks, community and faith-based organizations and other non-profits serving people in need.
In addition to the targeted CFAP activities, USDA will also use other available funding sources to purchase and distribute additional agricultural products to food banks.
Complete details regarding eligibility, rates and implementation will be released soon.
The USDA statement about CFAP can be read here.
From a cotton perspective, the farm level funding announcement comes – perhaps coincidently – on the heels of following a letter from 21 Cotton Belt senators to Secretary Perdue urging USDA to work with the cotton industry to help deliver urgently needed aid.
The letter noted, “Since the beginning of 2020, cotton futures prices have declined 30%. As retail stores around the globe have shuttered, orders from U.S. textile mills have dropped as much as 90% in the last month. Cotton merchandisers and distributors are also facing additional costs for storage, interest and other carrying costs as worldwide demand is significantly depressed.”
The senators encouraged USDA to work with the industry to craft policies that will aid each segment of the cotton industry.
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