U.S. Secretary of Agriculture Sonny Perdue announced the Coronavirus Food Assistance Program (CFAP) on Friday. This new U.S. Department of Agriculture (USDA) program will take several actions to assist farmers, ranchers and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need.
In a story from Gary Crawford, Perdue released some details of the much anticipated program.
Perdue says that part of the assistance package is the purchase of food products for distribution to those in need by the USDA.
Perdue said he realizes this assistance package will not cover all the losses in the agricultural sector, but it’s a good start. He says this new aid package will bring some rapid relief to agricultural producers and to Americans in need.
CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals.
- Direct Support to Farmers and Ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
- USDA Purchase and Distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.
USDA will utilize other available funding sources to purchase and distribute food to those in need, on top of these targeted programs.
- USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis and food bank needs.
- The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.
Further details regarding eligibility, rates, and other implementation will be released at a later date.
For more information on USDA’s work during the COVID-19 pandemic and resources available, please visit https://www.usda.gov/coronavirus.