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Pecan Growers Eligible for CFAP 2 payments

USDA is implementing Coronavirus Food Assistance Program 2 for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Pecans are included in this round.

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. Sign up at local FSA offices. Learn more at https://www.farmers.gov/cfap/specialty

CFAP 2 payments are available for eligible producers of specialty crop commodities categorized as either sales commodities or flat-rate crops. Specifically:

  • Sales commodities have payment calculations that use a sales-based approach, where producers of eligible commodities are paid based on five payment gradations associated with their 2019 sales. Eligible fruits, vegetables, horticulture, tree nuts, honey, and maple sap are categorized as sales-based commodities.
  • Flat-rate crops either do not meet the five-percent-or-greater national price decline trigger noted above or do not have data available to calculate a price change, but will have CFAP 2 payments calculated based on eligible acres of the crop planted in 2020. Indigo is categorized as a flat-rate commodity.

Payments for fruits, vegetables, horticulture, tree nuts, honey, and maple sap 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 RangePercent Payment Factor for the Producer’s 2019 Sales
of Eligible Commodities Falling in the Range
$0 to $49,99910.6%
$50,000 to $99,9999.9%
$100,000 to $499,9999.7%
$500,000 to $999,9999.0%
Sales over $1 million8.8%

Payments for fruit, vegetable, horticulture, tree nut, honey, and maple sap 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.

USDA’s Farm Service Agency will accept CFAP 2 applications from September 21 through December 11, 2020.

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About Lenny Wells

I am a Professor of Horticulture and Extension Horticulture Specialist for pecans at the University of Georgia. My research and extension programs focus on practical cultural management strategies that help to enhance the economic and environmental sustainability of pecan production in Georgia.