Farmers.gov is not optimized for this browser. Please use the latest versions of Chrome, Edge, or Safari for the best experience. Dismiss

Coronavirus Food Assistance Program – Additional Assistance FAQ

Frequently Asked Questions

The review of the Coronavirus Food Assistance Program (CFAP) is ongoing and we anticipate a decision in the weeks ahead. The deadline of February 26 has been eliminated and USDA’s Farm Service Agency will continue to accept applications during the evaluation period.

Last Updated: January 22, 2021

Table of Contents

Eligible Producers and Commodities

Q: Are contract livestock producers eligible for CFAP 2 additional assistance?

A: Yes, a person or legal entity that grows or produces livestock under contract for someone else is eligible for CFAP 2 additional assistance. While contract livestock producers were not originally eligible for CFAP 2, they are eligible now. 

Contract livestock producers must:

  • Have raised broilers, pullets, layers, chicken eggs, turkeys, hog, or pigs under a contract in 2019 and 2020. 
  • Demonstrate a drop in revenue for the period from January 1, 2020, through December 27, 2020, as compared to the period from January 1, 2019, through December 27, 2019.
  • Provide a copy of their contract.

Eligible producers can now apply for CFAP 2 between January 19 through February 26, 2021 by contacting their local USDA Service Center. If you have not worked with FSA before, one-on-one support with applications is also available by calling 877-508-8364.

Visit farmers.gov/cfap2/apply to access all application resources and learn more about applying for CFAP 2.

Q: What new commodities are now eligible for CFAP additional assistance?

A: Pullets and turfgrass sod are now eligible. These two commodities experienced COVID-19 market disruptions but were not explicitly included in the initial CFAP 2 rule. Payments for pullets are based on eligible sales in calendar year 2019. Payments for turfgrass sod are based on eligible sales in calendar year 2019, plus crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments in the 2019 crop year.

Eligible producers can now apply for CFAP 2 for these newly eligible commodities between January 19 through February 26, 2021 by contacting their local USDA Service Center. If you have not worked with FSA before, one-on-one support with applications is also available by calling 877-508-8364.

Visit farmers.gov/cfap2/apply to access all application resources and learn more about applying for CFAP 2.

Q: Is there an Adjusted Gross Income (AGI) limit to receive CFAP 2 additional assistance?

A: Yes. To be eligible to receive payment, a person’s or legal entity’s AGI cannot exceed $900,000 (using the average for the 2016, 2017, and 2018 tax years). However, producers with AGI exceeding the limit may be eligible to receive payment if 75 percent or more of their total AGI comes from farming, ranching, or forestry-related activities.

Q: Who must fill out forms to certify average AGI and Farm AGI?

A: Forms CCC-941 and, when applicable, CCC-942, are used for certifying average AGI and Farm AGI and are required to be filed by the applicant. The individual or a legal entity applying must provide information on all members, stockholders, or partners at or above the fourth level of ownership in the business structure. These forms are available at farmers.gov/cfap2/apply.

Q: Do the Farm Bill’s conservation compliance requirements apply to CFAP 2 additional assistance?

A: Producers participating in CFAP 2 must be in compliance with the highly erodible land conservation and wetland conservation provisions at 7 CFR Part 12. Producers must agree, by certifying Form AD-1026, that they will not produce an agricultural commodity on highly erodible land without a conservation plan, plant an agricultural commodity on a converted wetland, or convert a wetland to make possible the production of an agricultural commodity. This form is available at farmers.gov/cfap2/apply.

Q: Is there a crop insurance or risk management requirement that must be met to qualify for CFAP 2 additional assistance?

A: There is no requirement to have crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program (NAP) to be eligible for participation.

Q: Does participation in Small Business Administration (SBA) programs impact eligibility for CFAP 2 additional assistance?

A: Participation in SBA’s Paycheck Protection Program or Economic Injury Disaster Loan program does not impact producer eligibility for CFAP 2. The PPP duplicate benefit provision does not have an impact on FSA farm programs or farm loan programs.

Applying for CFAP Additional Assistance

Q: I applied for CFAP 2, but I am also a contract livestock producer. Do I submit a new application or modify an existing one?

A: If you have an existing application, you can modify it between January 19 and February 26, 2021 by contacting your local USDA Service Center. Visit farmers.gov/cfap2/apply to learn more about modifying your existing CFAP 2 application.

Q: I applied for CFAP 2, but I also raise pullets or grow turfgrass sod. Do I submit a new application or modify an existing one for payments on those newly eligible commodities?

A: If you have an existing application, you can modify it between January 19 and February 26, 2021 by contacting your local USDA Service Center. Visit farmers.gov/cfap2/apply to learn more about modifying your existing CFAP 2 application.

Q: How can I prepare to apply for CFAP 2?

A: If you are a new customer to USDA, your local FSA staff will work with you to fill out the application for the program, and will ask for this type of information:

  • Name and address
  • Personal information, including your Tax Identification Number
  • Farm operating structure
  • Adjusted Gross Income compliance certification to ensure eligibility
  • Direct deposit information to enable payment

Q: What documents do I need to submit with my application?

A: To complete the application for CFAP 2 additional assistance, producers will need to reference their sales, inventory, and other records. However, since CFAP 2 is a self-certification program, this documentation will not need to be submitted with the application. Because applications are subject to County Committee review and spot check, some producers will be required to provide documentation. Producers should retain the records and documentation they use to complete the application.

If a producer willfully makes and represents as true any verbal or written declaration, certification, statement, or verification that the producer knows or believes not to be true, in the course of either applying for or participating in CFAP 2, or both, the producer will be subject to prosecution under Federal criminal and civil fraud statutes.

Visit farmers.gov/cfap2/apply to learn more.

Q: My local USDA Service Center is not open for walk-in service. How do I apply for CFAP 2?

A: Please call the FSA office at your local USDA Service Center to schedule an appointment if you’d like assistance or have questions about applying for CFAP 2. You can check the status of your local USDA Service Center at farmers.gov/coronavirus/service-center-status.

A call center is available for producers who would like additional one-on-one support with the CFAP 2 application process. Please call 877-508-8364 to speak directly with a USDA employee ready to help. The call center can provide service to non-English speaking customers. Customers will select 1 for English and 2 for Spanish. For other languages, customers select 1 and indicate their language to the call center staff.

Q: How do I apply for CFAP 2 additional assistance?

A: USDA’s Farm Service Agency will accept new or modified CFAP applications from eligible producers January 19 through February 26, 2021. Swine producers will receive “top-up” payments automatically.

Are you eligible for additional assistance through CFAP? Application information related to your specific operation is detailed on farmers.gov/cfap by the specific commodity you grow or raise.

Producers who are modifying their applications should contact their local USDA Service Center for assistance. Producers who are filing new applications should contact their local USDA Service Center or call 877-508-8364 for one-on-one support. Additional information for those now eligible to apply for CFAP 2 or modify an existing application is available at farmers.gov/cfap2/apply.

Q: Are CFAP 2 funds a loan that must be repaid? Is there a fee to apply?

A: No. CFAP 2 is not a loan program and there is no cost to apply.
 

Producer Payments

Q: I applied for CFAP 1 and received payments for my swine. Do I need to do anything to receive the “top-up” payment?

A: No, you do not need to file a new application. FSA is automatically issuing these payments.

Q: I did not apply for CFAP 1, but I raise swine. Am I now eligible?

A: No, only producers with an approved CFAP 1 application for swine will receive the “top-up” payment.

Q: I raise beef cattle. Why am I not receiving “top-up” payments for CFAP 1?

A: Cattle will be addressed under the formulas included in the Consolidated Appropriations Act of 2021 in the weeks ahead.

Q: What are the payment limits for CFAP?

A: The total CFAP payment that a person or legal entity may receive, directly or indirectly through attribution of payments, is $250,000. CFAP 1 and 2 are separate programs, and payment limits are unique for each program. This limitation applies to the total amount of CFAP 1 or CFAP 2 payments made with respect to all eligible commodities.

The total amount of CFAP 1 or CFAP 2 payments made to a legal entity – such as to a corporation, limited liability corporation, limited partnership, trust, or estate – is $250,000 except if:

  • two different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $500,000. 
  • three different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $750,000.

Although the payment limitation is increased for the corporation, LLC, LP, trust, or estate, each members’ payment limitation (received directly or indirectly) remains subject to the $250,000 individual person payment limit.

These payment limit provisions are different from and separate from the payment limitations established by the 2018 Farm Bill.

Q: Can CFAP payments be withheld to satisfy a debt?

A: No. Per the CFAP regulation, these payments will not be subject to administrative offset. This mean the payments will not be withheld to satisfy any USDA debts nor will they be offset by Treasury.

Q: Are CFAP payments going to be counted as taxable income?

A: The Commodity Credit Corporation reports program payments to the Internal Revenue Service and program participants on a CCC-1099-G. This report is a service to help participating producers report taxable income. Please consult with the IRS or your tax preparer for any additional questions on how this income impacts your operation.
 

Funding and Payment Calculations

Q: I grow or raise a CFAP 2 sales-based commodity that suffered a loss covered by crop insurance indemnity, NAP, or WHIP+ in crop year 2019. I applied for CFAP 2, and my payment calculation only included eligible sales. Can I revise my application to update how the payment is calculated?

A: Yes, producers of sales commodities can modify their applications to include crop insurance indemnities, Noninsured Crop Disaster Assistance Program (NAP), and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments from crop year 2019 in the calculation. This calculation adjustment is for specialty crops, aquaculture, tobacco, specialty livestock, nursery crops, and floriculture as detailed on farmers.gov/cfap. Because calculations were based on 2019, this change to include crop insurance indemnities, NAP, and WHIP+ payments more accurately represents what a producer would have marketed in a normal year.

If you have an existing application that needs modification to account for an insurance indemnity, NAP payment, or WHIP+ payment in crop year 2019, you can modify it between January 19 and February 26, 2021 by contacting your local USDA Service Center. Visit farmers.gov/cfap2/apply to learn more about modifying your existing CFAP 2 application.

Q: What if I had crop insurance but applied for CFAP 2 without a 2020 actual production history (APH) for my price-trigger crops?

A: FSA used the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for producers who did not have an available APH approved yield. FSA originally used the ARC-CO benchmark yield multiplied by 85 percent to calculate payments. FSA is updating calculations for producers with crop insurance, using the ARC-CO benchmark yield multiplied by 100 percent. This impacts producers with crop insurance coverage who grow barley, corn, sorghum, soybeans, sunflowers, upland cotton, and wheat. This change provides improved support for producers with crop insurance when an APH approved yield was not available. Producers who applied during the sign-up period that closed December 11, 2020, can modify an existing CFAP 2 application between January 19 and February 26, 2021. Visit farmers.gov/cfap2/apply to learn more about modifying your existing CFAP 2 application.

Q: Where did USDA get the funds for CFAP Additional Assistance?

A: Funding for CFAP 1 and CFAP 2 was provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Commodity Credit Corporation (CCC). CFAP Additional Assistance payments will come from CFAP 1 and CFAP 2 remaining funds.

Q: Why didn’t USDA implement the Consolidated Appropriations Act of 2021 signed into law on December 27, 2020?

A: The contract producer provisions included in CFAP Additional Assistance follow the direction provided by Congress in the Consolidated Appropriations Act of 2021, as does the inclusion of Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments in CFAP 2 sales-based commodity revenue. Additionally, FSA has implemented the Marketing Assistance Loans extensions for crop year 2021 loans as authorized by the Act.

FSA has also been preparing to quickly implement mandatory crop, cattle, and dairy margin coverage provisions in the coming weeks.