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Coronavirus Food Assistance Program 2 for Wool Producers

Are you a wool producer whose operation has been directly impacted by the coronavirus pandemic? USDA is implementing Coronavirus Food Assistance Program 2 for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.

Coronavirus Food Assistance Program 2, or CFAP 2, will provide producers with financial assistance that gives them the ability to absorb some of the increased marketing costs associated with the COVID-19 pandemic. USDA will accept CFAP 2 applications from September 21, 2020 through December 11, 2020. Learn more at farmers.gov/cfap.

 

Wool Eligibility

Wool is eligible for CFAP 2.

CFAP 2 payments are available for eligible producers of wool, which is categorized as a sales commodity. Payment calculations will use a sales-based approach, where wool producers are paid based on five payment gradations associated with their 2019 sales.

 

CFAP 2 Payments for Wool

Payments for wool will be based on the producer’s 2019 sales of eligible commodities in a declining block format using the following payment factors, and will be equal to:

  1. The amount of the producer’s eligible sales in calendar year 2019, multiplied by
  2. The payment rate for that range.
2019 Sales Range Percent Payment Factor for the Producer’s 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 wool producers who began farming in 2020 and had no sales in 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 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.

Additional examples of CFAP 2 sales commodity calculations for five hypothetical specialty commodity producers can be found on page 22 of the Cost-Benefit Analysis published under CFAP 2 Resources on farmers.gov/cfap. We recommend referencing these examples to calculate your estimated CFAP 2 payments for wool.

 

Additional CFAP 2 Information

Farm Service Agency staff at local USDA Service Centers will work with producers to file CFAP 2 applications. Producers interested in one-on-one support with the CFAP 2 application can also call 877-508-8364 to speak directly with a USDA employee ready to offer assistance at our call center.

Visit farmers.gov/cfap for additional information on Coronavirus Food Assistance Program 2, other eligible commodities, CFAP 2 eligibility, payment limitations and structure, and how to apply.

 

Find Your Local Service Center

We are committed to delivering USDA services to America’s farmers and ranchers while taking safety measures in response to COVID-19. While employees continue to staff our Service Centers, some are only available for phone appointments at this time. You can learn the status of your service center through this tool. Learn more at farmers.gov/coronavirus.

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.