Sign-up is underway for the Coronavirus Food Assistance Program (CFAP), and the National Milk Producers Federation (NMPF) is urging all dairy farmers to use the program. It will provide much-needed and much-appreciated aid in upcoming weeks and months. CFAP provides support to producers who have suffered a 5%-or-greater price decline due to COVID-19.
“The sooner a farmer signs up, the sooner this welcome assistance will arrive,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “NMPF is ready to help dairy producers, answering questions and offering materials online even as we continue working with USDA and members of Congress to smooth out details and discuss additional aid.”
All dairy operations with milk production in January, February, and/or March 2020 are eligible for CFAP payments. Any dumped milk production during those months is also eligible for assistance. Milk production enrolled in risk management programs, such as Livestock Gross Margin (LGM), Dairy Revenue Protection (DRP), Dairy Margin Coverage (DMC) or forward contracts, also qualifies for CFAP payments. Producers must complete all CFAP application forms and provide required documentation.
For dairy, a single payment will be made derived from two funding formulas intended to calculate losses caused by the coronavirus this year. The first and larger component is calculated from a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by $4.71 per hundredweight. The second component of the payment is based on a 1.4% increase in that first quarter production, multiplied by $1.47 per hundredweight. Overall, the payment amounts to $6.20/cwt. for a farm’s production in January through March of this year.
USDA Farm Service Agency (FSA) offices are accepting applications now through August 28, 2020. Call and set up an appointment with your local FSA office to determine your eligibility and to apply for this assistance. Learn more at nmpf.org.