Reminder....USDA is providing up to $1 billion for payments to contract producers of eligible livestock and poultry of up to 80 percent of their revenue losses from January 1, 2020, through December 27, 2020. These funds were made available through the Consolidated Appropriations Act, 2021.
Contract producers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs may be eligible for CFAP 2. Ducks, geese, pheasants, and quail produced under contract are also eligible commodities, as well as breeding stock of eligible livestock and eggs of all eligible poultry types raised by contract producers.
Payments for contract producers are based on a comparison of eligible revenue for the periods of January 1, 2019, through December 27, 2019, and January 1, 2020, through December 27, 2020. Contract growers may elect to use eligible revenue from the period of January 1, 2018, through December 27, 2018, instead of that date range in 2019 as a more representative comparison to 2020. This is intended to provide flexibility and make CFAP 2 more equitable for contract producers who had reduced revenue in 2019 compared to a normal year for their operation. The difference in revenue is then multiplied by 80 percent to determine
a final payment, as shown in the following equation:
Expected CFAP 2 Payment for Contract Producers = ((Eligible Revenue Received from January 1, 2019 through December 27, 2019 OR January 1, 2018 through December 27, 2018) – (Eligible revenue received from January 1, 2020 through December 27, 2020) x 0.80)
FSA may now adjust a contract producer’s eligible revenue based on information certified by the contract producer if the producer did not have a full period of revenue from January 1 to December 27 for either 2018 or 2019, or if the contract producer increased their operation size in 2020. Additionally, payments will be provided for eligible contract producers who were not in operation in 2018 or 2019, who would have been ineligible under the previous final rule. Assistance for these producers is based on their 2020 eligible revenue and the average revenue loss level, which will be determined by USDA for a
geographic area or region based on the best available data.
Payments to contract producers may be factored if total calculated payments exceed the available funding. For more information please contact the Farm Service Agency at 704-872-5061 ext. 102.