Are you a tobacco producer whose operation has been directly impacted by the coronavirus pandemic? USDA is implementing updates to the Coronavirus Food Assistance Program for producers of agricultural commodities marketed in 2020 who faced market disruptions due to COVID-19. This is part of a larger initiative to improve USDA pandemic assistance to producers.
[This page has been archived.] The signup period for USDA’s Coronavirus Food Assistance Program 2 (CFAP 2) is closed. USDA’s Farm Service Agency re-opened CFAP 2 signup beginning April 5, 2021. Signup closed on October 12, 2021.
Agriculture Secretary Tom Vilsack announced on March 24 the U.S. Department of Agriculture will begin providing additional financial assistance to farmers, ranchers, and producers impacted by COVID-19 market disruptions. Resources for these payments were approved by Congress in fiscal years 2020 and 2021.
The original application period for CFAP 2 was September 21 through December 11, 2020. USDA re-opened CFAP 2 signup for all eligible producers beginning April 5, 2021. All new or modified CFAP 2 applications are due by October 12, 2021. Learn more at farmers.gov/cfap.
Tobacco is eligible for CFAP 2.
CFAP 2 payments are available for eligible producers of tobacco, which is categorized as a sales commodity. Payment calculations will use a sales-based approach, where tobacco producers are paid based on five payment gradations associated with their 2018 or 2019 sales.
CFAP 2 Payments for Tobacco
Tobacco is a unique commodity in that payments under CFAP 2 are not authorized through the Commodity Credit Corporation (CCC) Charter Act, but instead through the authority of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
FSA updated the CFAP 2 payment calculation for tobacco to account for crop insurance indemnities and payments through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). This more accurately represents what a producer would have marketed if not for a cause of loss.
Tobacco is categorized as a sales-based commodity. On August 24, 2021, USDA announced an amendment to the CFAP 2 payment calculation for sales-based commodities to allow producers to substitute 2018 sales for 2019 sales. Previously only 2019 was used to approximate the amount tobacco producers would have expected to market in 2020. Giving producers the option to substitute 2018 sales for 2019 sales provides additional flexibility to producers who had reduced sales in 2019.
Payments for tobacco producers are now calculated using the producer’s eligible sales during calendar year 2018 or 2019 plus crop insurance indemnities and WHIP+ payments received for crop year 2018 or 2019, multiplied by the applicable payment rate. This may mean a higher payment for producers.
|2018 or 2019 Sales Range||Percent Payment Factor for the Producer’s 2018 or 2019 Sales
of Eligible Commodities Falling in the Range
|$0 to $49,999||10.6%|
|$50,000 to $99,999||9.9%|
|$100,000 to $499,999||9.7%|
|$500,000 to $999,999||9.0%|
|Sales over $1 million||8.8%|
Payments for tobacco producers who began farming in 2020 and had no sales in 2018 or 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date.
Eligible sales only include sales of raw commodities grown by the producer. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, is not included in the payment calculation.
Example: A producer’s 2018 or 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775.
Visit farmers.gov/cfap/apply to learn more about submitting a new CFAP 2 application for tobacco.
Additional CFAP Information
Visit farmers.gov/cfap for more information on the Coronavirus Food Assistance Program, including eligible commodities, producer eligibility, payment limitations and structure, and the latest program resources.
Find Your Local Service Center
USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to ﬁnd your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.
Visit the Risk Management Agency website to ﬁnd a regional or compliance office or to ﬁnd an insurance agent near you.