California Avocado growers now eligible for CFAP 2 payments

  • Sep 18, 2020

President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue today announced up to an additional $14 billion dollars for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signups will begin this Monday, September 21 and run through December 11, 2020, for this next round of Coronavirus Food Assistance Program payments (CFAP 2).

Producers whose agricultural operation has been impacted by the pandemic since April 2020 are encouraged to apply for CFAP 2. Payments will be made for three categories of commodities: Price Trigger Commodities, Flat-rate Crops and Sales Commodities.

Based on CAC staff review California avocado producers are eligible under the Sales Commodities category. Payment calculations will use a gross sales value of 2019 production, where producers are paid based on five payment gradations associated with their 2019 sales (table below).

A complete list of eligible commodities, payment rates and calculations are available on farmers.gov/cfap. Please note: to see avocados listed follow this link farmers.gov/cfap/specialty, scroll down to the “Specialty Crop” tab, then open the “Tree Nut” link.

With the expanded CFAP 2 program it is anticipated there will be an over demand for the $14 billion dollars. Accordingly, California avocado growers are strongly encouraged to file your claim as soon as possible, beginning on Monday, September 21, 2020 (https://www.farmers.gov/cfap). Growers are eligible to receive payments (averaging around 10%) of your 2019 gross sales value. It appears the application process will be straightforward. To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records for 2019.

More information about CFAP 2 is in the full announcement (https://www.usda.gov/media/press-releases/2020/09/18/usda-provide-additional-direct-assistance-farmers-and-ranchers).

CFAP 2 Payments for Sales Specialty Crops

Payments for Specialty Crops 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 Range

Percent Payment Factor for the Producer’s 2019 Sales of Eligible Commodities Falling in the Range

$0 to $49,999

10.6%

$50,000 to $99,999

9.9%

$100,000 to $499,999

9.7%

$500,000 to $999,999

9.0%

Sales over $1 million

8.8%

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