USDA on Tuesday announced a final rule providing eligibility for contract chicken producers to receive assistance under the Coronavirus Food Assistance Program (CFAP) 2 for revenue losses related to COVID-19.
The rule makes contract producers of broilers, pullets, layers, and poultry eggs – among other contract commodities – eligible for assistance. According to USDA’s press release, this update includes eligible breeding stock and eggs of all eligible poultry types produced under contract.
In the version of the rule announced by the previous administration, payments for contract producers were to be based on a comparison of eligible revenue for the periods of Jan. 1, 2019, through Dec. 27, 2019, and Jan. 1, 2020, through Dec. 27, 2020.
This week’s changes mean contract producers can now elect to use eligible revenue from the period of Jan. 1, 2018, through Dec. 27, 2018, instead of that date range in 2019 if it is more representative. They are intended to provide flexibility and make the program more equitable for contract producers who had reduced revenue in 2019 compared to a normal production year. The difference in revenue is then multiplied by a discount factor of 80 percent to determine a final payment – which is unchanged from the previous version of the rule.
Payments to contract producers may be factored if total calculated payments exceed the available funding and will be made after the application period closes, according to USDA.
Additional flexibilities have been added to account for increases to operation size in 2020 and situations where a contract producer did not have a full period of revenue from Jan. 1 to Dec. 27 for either 2018 or 2019. Assistance is also available to new contract producers who began their farming operation in 2020. Further details can be found in the full text of the rule here.
Sign-up for CFAP 2 was re-opened in March and remains open now. Newly eligible producers who need to submit a CFAP 2 application or producers who need to modify an existing one can do so by contacting their local FSA office. Producers can find their local FSA office by visiting here. Producers can also obtain one-on-one support with applications by calling 877-508-8364. All new and modified CFAP 2 applications are due by the October 12 deadline.
NCC would like to thank the American Farm Bureau Federation for its support of this program as well as the assistance of numerous state poultry associations, including the Alabama Poultry & Egg Association, Delmarva Chicken Association, Georgia Poultry Federation, Kentucky Poultry Federation, Mississippi Poultry Association, North Carolina Poultry Federation, South Carolina Poultry Federation, Tennessee Poultry Association, Texas Poultry Federation, California Poultry Federation, Ohio Poultry Association, The Poultry Federation, and the Virginia Poultry Federation.
In addition, this program would not be possible without the steadfast support of Senate Chicken Caucus Co-Chairs Senators Chris Coons (D-DE) and Roger Wicker (R-MS), as well as Senator John Boozman (R-AR), Tom Carper (D-DE), Mark Warner (D-VA), Tom Cotton (R-AR), Thom Tillis (R-NC), Chris Van Hollen (D-MD), Ben Cardin (D-MD), Cindy Hyde-Smith (R-MS), Bill Cassidy (R-LA), Richard Burr (R-NC), John Cornyn (R-TX), Lindsey Graham (R-SC), Bob Casey (D-PA), Tim Kaine (D-VA), James Lankford (R-OK), Jim Inhofe (R-OK), Tim Scott (R-SC), and former Senators Kelly Loeffler (R-GA) and Doug Jones (D-AL).
NCC would also like to thank Congressional Chicken Caucus Co-Chairs Steve Womack (R-AR) and Jim Costa (D-CA), as well as Reps. Robert Aderholt (R-AL), Trent Kelly (R-MS), John Rose (R-TN), Elaine Luria (D-VA), Austin Scott (R-GA), Steven Palazzo (R-MS), Dr. Andy Harris (R-MD), Terri Sewell (D-AL), Frank Lucas (R-OK), Sanford Bishop (D-GA), Jeff Fortenberry (R-NE), Mike Rogers (R-AL), Rick Crawford (R-AR), Scott DesJarlais (R-LA), James Comer (R-KY), David Scott (D-GA), Rodney Davis (R-IL), Jody Hice (R-GA), Markwayne Mullin (R-OK), Mike Johnson (R-LA), Chuck Fleischmann (R-TN), Rick Allen (R-GA), Henry Cuellar (D-TX), David Rouzer (R-NC), Bruce Westerman (R-AR), Vicky Hartzler (R-MO), French Hill (R-AR), Dan Bishop (R-NC), Adrian Smith (R-NE), Bill Huizenga (R-MI), Billy Long (R-MO), David Kustoff (R-TN), Glenn ‘GT’ Thompson (R-PA), Bob Gibbs (R-OH), Michael Guest (R-MS), Vicente Gonzalez (D-TX), Ben Cline (R-VA), Kevin Hern (R-OK), Bennie Thompson (D-MS), and former Reps. Dr. Ralph Abraham (R-LA), Doug Collins (R-GA), Denver Riggleman (R-VA), Tom Graves (R-GA), Martha Roby (R-AL), Ron Wright (R-TX), and Dr. Roger Marshall (R-KS).
Finally, NCC appreciates the assistance of the Delaware Department of Agriculture during the creation of and modifications to this program.
