We are approaching the signup deadline for CFAP 2.0. Today we review CFAP 2.0 and payments by commodity to this point. Be sure to sign up for eligible commodities.
Local Market Conditions
CFAP2
USDA implemented the Coronavirus Food Assistance Program 2 (CFAP2) for producers who continue to face market disruptions and associated costs because of COVID-19. You can find details about CFAP2 payments in our post from September 21, 2020. The deadline to sign up for CFAP2 is December 11, 2020, so be sure to visit your FSA office as soon as possible.
Payments through CFAP2
Payment rates through CFAP2 are based on price damages suffered due to COVID-19 during a given period. Since the initiation of CFAP2 corn, cattle, sales commodities, soybeans, and milk account for 83% of payments nationwide. Sales commodities include aquaculture products, goats milk, floriculture and nursery crops, tobacco, wool, specialty crops like fruit, honey, and tree nuts, and specialty livestock like bison, geese, and turkey. Other commodities that received more than 1% of all payments nationwide include hogs/pigs, alfalfa, wheat, and upland cotton.
In all, the commodities listed in the previous paragraph account for 96% of all payments, approximately $9,131.77 million. Total payments as of 11/8/2020 amount to $9,548,979,083. Of those payments corn accounted for $2.6 billion, cattle $2.1 billion, sales commodities $1.1 billion, soybeans $1 billion, and milk $943 million.
CFAP2 Payments by Category, U.S.
For the Lone Star State the makeup of total payments to this point is weighted substantially towards one category. Payments to cattle producers in the state of Texas account for 49%, $217 million of all payments. This is no surprise, given the prevalence of market cattle in the state of Texas. Even though payments for cattle account for a near-majority of payments to Texas producers, these payments represent only 10% of payments for cattle nationwide. Rounding out the top five commodities by payment in the state of Texas are upland cotton, corn, wheat, and milk. As of 11/8/2020 Texas producers of upland cotton received $73 million, corn $39 million, wheat $32 million, and milk $32 million.
CFAP2 Payments by Category, Texas
The table below shows total payments by commodity for all commodities in Texas receiving payments. In the U.S. column, only payments received by producers of commodities in Texas are included.
Payments through CFAP2 by Commodity (Millions)
Nationwide, Texas ranks 7th in total payments received. By rank the top 10 states are Iowa, Nebraska, Minnesota, Illinois, California, Kansas, Texas, South Dakota, Wisconsin, and North Dakota. Approximately 50% of all payments are acreage based, or directed to producers of row crops. The bulk of payments to the top 10 states were directed to acreage-based commodities. Only California, led by payments directed to sales-based commodities, was not led by acreage-based payments or livestock payments.
Reminder
Don’t forget, applications for CFAP2 are due December 11, 2020! Do you need more information? Visit our previous post from September 21, 2020 or go to https://www.farmers.gov/cfap for information on how to calculate your payments and details on how to apply!