Wool, Lambs, Sheep Eligible for CFAP 2 Payments

Sep 18, 2020

Agriculture

Wool, Lambs, Sheep Eligible for CFAP 2 Payments

American sheep and wool producers will see direct benefits from a second round of Coronavirus Food Assistance Program payments that were announced today by President Donald J. Trump and Secretary of Agriculture Sonny Perdue.

“The American Sheep Industry Association had been assured by officials from the U.S. Department of Agriculture that a second round of CFAP funding was coming, and that America's sheep and wool producers would be eligible for payments through the additional funding,” said ASI President Benny Cox.

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.

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:

The amount of the producer's eligible sales in calendar year 2019, multiplied by
The payment rate for that range.

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.

For lambs and sheep, payments will be equal to:

The producer's highest owned inventory of eligible lambs and sheep – excluding breeding stock – on a date selected by the producer from April 16, 2020, through August 31, 2020,

Multiplied by the payment rate of $27 per head.

Payments will be made from an additional $14 billion set aside for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the second round of Coronavirus Food Assistance Program will begin Sept. 21 and run through Dec. 11, 2020.

There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

USDA's Farm Service Agency will be hosting a producer education webinar on the second round of CFAP funding on Thursday, Sept. 24, at 3 p.m. eastern time.