Updated: Sep 14
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Earlier this year, USDA announced Coronavirus Food Assistance Program 2 (CFAP 2) funding for contract livestock and poultry growers. USDA later put the program for contract growers on hold, however, to revise the program. USDA recently announced modifications and allows applications by contract livestock and poultry growers for CFAP 2 again. Applications are due by October 12, 2021.
The initial CFAP programs excluded contract livestock and poultry producers, but many had faced market disruptions due to COVID-19 shutting down processing facilities, leading many companies to depopulate livestock and poultry. Eligible for this program are contract growers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs. Also eligible are ducks, geese, pheasants, quail produced under contract, breeding stock of eligible livestock, and eggs of all eligible poultry types raised by contract producers.
Payments will be made by comparing eligible revenues from January 1, 2019, to December 27, 2019, and January 1, 2020, to December 27, 2020. For contract growers who may have experienced lower revenues in 2019, contract growers have the option to use the same period from 2018 (January 1 to December 27, 2018) if that period is more representative of a typical year of operation. FSA could also adjust the contract grower’s eligible revenue if the grower produces information demonstrating an entire period of revenue in 2018 or 2019. FSA can also make adjustments if the contract grower increased the operation in 2020. FSA was not allowed to make these adjustments based on a prior version of this program. For those contract growers who were not in production in 2018 or 2019, FSA will look at the average revenue loss level based on the best available data.
An eligible contract grower will receive 80 percent of the difference, either the 2019 eligible revenues or 2018 eligible revenues minus the 2020 eligible revenues. For example, if a contract poultry grower had eligible revenues in 2019 of $350,000 and eligible revenues of $200,000 in 2020. The grower could expect a CFAP payment of $120,000 (80% * ($350,000 - $200,000)). Payments might be reduced based on available funding.
All CFAP 2 applications, new or modified, are due by October 12, 2021. Contract growers can go to the CFAP 2 page on farmers.gov to apply online for assistance or set up an appointment at the local USDA service center.