Agriculture in America is in crisis. The Great Recession which began in 2008 brought farm prices down. The trade war of the last few years eliminated much of agriculture’s export market. Net farm income has dropped 69% since 2013; farmers and ranchers are expected to lose another $20 billion in net income this year. Farm bankruptcies have crept up. Farmers know when they are planting this spring that their crops will probably lose money. Eleven ethanol plants have closed, decreasing the demand for corn. Hog prices have dropped 53%, and millions of pigs are being euthanized because meat packing plants have closed or reduced their capacity due to COVID-19 outbreaks. Cattle prices have dropped 25%.
Last week the Department of Agriculture (USDA) released information about the COVID-19 relief program for agriculture producers. The Coronavirus Food Assistance Program (CFAP) was funded through the CARES Act and is being implemented by USDA’s Farm Service Agency.
CFAP will provide vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline or who had losses due to market supply chain disruptions due to COVID-19. Eligible commodities include corn, sunflowers, beans, cattle, hogs, sheep, as well as many crops not produced in our area. USDA will consider compensation for additional crops if data justifies inclusion under CFAP.
Beginning May 26, USDA’s Farm Service Agency (FSA) is accepting applications from agricultural producers who have suffered losses. More information is available at the USDA website: https://www.farmers.gov/cfap.
The Box Butte County USDA/FSA Service Center office is located at 124 East 24th Street, Alliance. Phone: 308-762-4322. USDA stresses that offices are open for business by phone appointment only. FSA will be working with agricultural producers by phone and will be using email and online tools to process applications.
To apply for CFAP funds, ag producers need to gather recent sales and inventory information. An application form will need to be completed with the FSA. If you are a new customer to USDA, the local staff will ask for this information: Name and address; Personal information, including your Tax Identification Number; Farm operating structure; Adjusted Gross Income compliance certification to ensure eligibility; Direct deposit information to enable payment. Staff will work with producers who need to complete portions of the CCC-902 – Farm Operating Plan.
Assistance to cattle producers has two components – cattle sold between Jan. 15 to April 15; and cattle inventory subject to price risk on a date of the producers choosing between April 16 to May 14. Cattle producers can participate in either or both components of the program.
Congress also voted to fund the Market Facilitation Program (MFP) for one more round. MFP has provided assistance to farmers and ranchers with commodities directly impacted by foreign retaliatory tariffs. MFP was to end in January when trade agreements were made with China, Canada, and Mexico. Funds will be released through the Commodity Credit Corporation in July.
An additional $3 billion was allocated by the government for food purchases for food banks through the Farmers to Families Food Box Program. Under this program food previously destined for restaurants and bulk purchasers can be sold by farmers to area distributors. Distributors partner with USDA to package family-sized boxes with fresh produce, dairy and meat products, then transport them to non-profits and government entities across America. Families pick up food boxes from local schools, food banks, and other non-profits. We have not had a distributor approved for our area yet, but area agencies are working to establish a way for us to participate.
Farmers and ranchers have been among the biggest casualties in both trade disputes and the coronavirus pandemic. The federal government has provided billions of dollars to assist agriculture producers during this difficult time.