USDA’s Coronavirus Food Assistance Program
June 4, 2020
(CFAP) Direct Payments
Randy Schnepf
On April 17, 2020, Secretary of Agriculture Sonny Perdue announced that the U.S. Department
Specialist in Agricultural
of Agriculture (USDA) would initiate the Coronavirus Food Assistance Program (CFAP) to
Policy
provide immediate financial relief to farmers, ranchers, and consumers in response to the

COVID-19 national emergency. CFAP consists of two distinct initiatives: a $16 billion direct
payment program for agricultural producers that have been impacted by the decline in

commodity prices and the disruption in food supply chains related to COVID-19, and a $3 billion
food purchase and distribution program. This report focuses on the larger of these two CFAP initiatives—the $16 billion
direct payment program. The CFAP direct payment program derives its funding from two sources: $9.5 billion emergency
program spending authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) and an
existing $6.5 billion balance from the Commodity Credit Corporation (CCC) Charter Act of 1948 (P.L. 80-806; 15 U.S.C.
714 et seq.).
On May 19, 2020, USDA released the final rule that details CFAP’s $16 billion direct payment program, including the list of
eligible commodities, eligibility requirements for producers, payment calculations, and application procedures. In its
announcement, USDA stated that it would begin accepting applications on May 26, through the Farm Service Agency (FSA),
from agricultural producers who have suffered losses. To be eligible, an application must be submitted to any FSA county
office by the close of business on August 28, 2020. Payments to eligible producers are expected to be made soon after each
application is processed. USDA’s FSA will be the principal agency charged with implementing CFAP’s direct payment
program. FSA is to be assisted by the Agricultural Marketing Service (AMS) with respect to matters dealing with producers
of specialty crops.
To be eligible for a payment, a commodity must have suffered a price loss of at least 5% during the mid-January to mid-April
period, or was subject to additional significant marketing costs for unexpected supply chain disruptions, including unsold
inventories. Specialty crops may also qualify for a payment if product was shipped off the farm, but spoiled prior to receipt of
payment due to COVID-19-caused disruption of the food supply chain. For an individual or legal entity to be eligible, they
must complete an application to determine the quantities affected and to meet certain other criteria, including conservation
compliance, share in the risk of profit and loss from the farm’s operation, and an average Adjusted Gross Income (AGI) for
2016, 2017, and 2018 that is less than $900,000, unless at least 75% of AGI is from farming and ranching activities.
USDA is to track payments made from the CARES Act and the CCC Charter Act funds separately, to ensure that the
payments are consistent with each respective authority. As a result, every eligible commodity may receive a payment based
on two different types of losses or costs: (1) income losses due to mid-January-to-mid-April price declines, which is to be
partially offset by payments from CARES Act funds; and (2) unexpected marketing costs due to fo od supply chain
disruptions, which is to be partially offset by payments from CCC funds.
USDA is to pay an initial tranche equal to 80% of the aggregate payment to each qualifying producer. If funds remain
available after the initial payment to all eligible applicants, and depending on whether USDA adds other commodities to the
list, USDA is to disburse the remaining funds such that the initial and final payments do not exceed a total of $9.5 billion of
CARES Act funds and $6.5 billion of CCC funds. Funds may be prorated if necessary to stay within these limits . There is a
payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited
liability companies, or limited partnerships may qualify for payments of up to $750,000 if at least three members each
actively provide at least 400 hours of personal labor or personal management to the farming operation.
Congress may be interested in evaluating whether CFAP payments mitigate the damage caused by the COVID-19 pandemic
for individual farming operations. Will additional assistance be necessary later this year? Is additional assistance needed to
support certain affected industries that are not eligible under USDA’s initial rollout? Another immediate concern may be
oversight of the large sums of taxpayer money that are to flow out through the USDA and the CCC. Producer self-
certification of losses may create an incentive to over-report losses.
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USDA’s Coronavirus Food Assistance Program (CFAP) Direct Payments

Introduction
On April 17, 2020, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of
Agriculture (USDA) would initiate the Coronavirus Food Assistance Program (CFAP), valued at
$19 bil ion, to provide immediate financial relief to farmers, ranchers, and consumers in response
to the COVID-19 national emergency.1
CFAP Includes Two Programs
According to Secretary Perdue, CFAP consists of two distinct initiatives: a $16 bil ion direct
payment program for agricultural producers that have been impacted by the decline in commodity
prices and the disruption in food supply chains related to COVID-19, and a $3 bil ion food
purchase and distribution program for affected consumers referred to as the Farmers to Families
Food Box Program.
These two programs derive their specific funding from different sources, and are being
implemented by different agencies within USDA. The $16 bil ion designated for the direct
payments program is funded from $9.5 bil ion of emergency spending authorized by the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) and an existing
$6.5 bil ion balance from the Commodity Credit Corporation (CCC) Charter Act of 1948 (P.L.
80-806; 15 U.S.C. 714 et seq.).2 The $3 bil ion for the commodity purchase portion of CFAP is
funded from the Families First Coronavirus Response Act (FFCRA; P.L. 116-127, §1101(g)) that
authorizes USDA to purchase commodities for emergency distribution in the United States.3
USDA, through its Agricultural Marketing Service (AMS), began food purchase and distribution
activities within a week of announcing the CFAP. In contrast, the direct payment component of
CFAP is being implemented by USDA’s Farm Service Agency (FSA). FSA went through a longer
(albeit expedited) rulemaking process to determine how payments would be made.
Report Overview
This report describes the details of the larger of these two CFAP initiatives—the direct payment
program. It describes how this program is funded and administered, including specific details on
the calculation and implementation of payments.
The report begins with a brief overview of the CFAP direct payment program, including its policy
objectives, funding sources, and implementing agencies. The next section describes the details of
the CFAP direct payment program, including eligibility requirements for both producers and
commodities, application procedures, payment calculations, and the program’s timeline. The
report ends with a brief discussion on issues of potential interest to Congress. An appendix at the
end of the report includes supplementary tables that provide details on USDA’s derivation of the
payment rates for affected commodities under both CARES Act and CCC Charter Act criteria, as
wel as additional USDA forms that must be completed by producers for payment eligibility.

1 USDA, “USDA Announces Coronavirus Food Assistance Program,” Release No. 0222.20, April 17, 2020.
2 USDA, FSA, “Coronavirus Food Assistance Program,” 85 Federal Register 30825, May 21, 2020.
3 Agricultural Marketing Service, “Notice of Funds Availability (NOFA); Purchase of Fruit, Vegetable, Dairy, and
Meat Products Due to COVID-19 National Emergency-USDA Food Box Distribution Program,” 85 Federal Register
23325, April 27, 2020.
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USDA’s Coronavirus Food Assistance Program (CFAP) Direct Payments

An earlier report by CRS provides information on how the COVID-19 pandemic affected the U.S.
food supply chain—including its deleterious impact on agricultural producers—and precipitated
the congressional and USDA actions described here.4 This earlier report also provides details on
the CFAP food purchase and distribution initiative and its Farmers to Families Food Box
program. Those events and programs are not reviewed here.
CFAP Direct Payment Program Overview
USDA Authorized to Design and Implement CFAP
Under the CARES Act, Congress delegated broad authority to USDA to develop and administer a
support program in response to COVID-19.5 In particular, the CARES Act provides $9.5 bil ion
for USDA to “prevent, prepare for, and respond to coronavirus by providing support to
agricultural producers impacted by coronavirus, including producers of specialty crops, producers
that supply local food systems, including farmers’ markets, restaurants, and schools, and livestock
producers, including dairy producers.”6 This approach provides funding to the Secretary of
Agriculture with general authority to respond to a crisis, and therefore is similar to emergency
appropriations for wildfires and hurricanes in 2018 and 2019 in which USDA was tasked to
develop a payment program from a general appropriation.7
Similarly, USDA interprets the CCC Charter Act as providing broad authority to use CCC funds
in support of U.S. agriculture.8 Based on these broad authorities, USDA developed the CFAP
direct payment program.
On May 19, 2020, USDA released a final rule to implement CFAP’s $16 bil ion direct payment
program including eligibility requirements for commodities and producers, application
procedures, and payment calculations.9 In its announcement, USDA stated that it would begin
accepting applications on May 26, through the Farm Service Agency (FSA), from agricultural
producers who have suffered losses.10 Al applications must be received by August 28, 2020.
FSA is to be the principal agency charged with implementing CFAP’s direct payment program.
AMS is to assist FSA with respect to specialty crops issues, such as determinations of sales prices
and marketing costs.
CFAP direct payments are to provide financial assistance to producers and ranchers of
agricultural commodities that suffered from price declines of at least 5% between mid-January
and mid-April, or who face additional significant marketing costs associated with unexpected
carrying-costs of unsold commodities or spoilage due to market supply chain disruptions. The

4 CRS Report R46347, COVID-19, U.S. Agriculture, and USDA’s Coronavirus Food Assistance Program (CFAP) .
5 T he CARES Act (P.L. 116-136), Division B—Emergency Appropriations For Coronavirus Health Response And
Agency Operations, T itle I, Agricultural Programs, Office of the Secretary.
6 USDA, “USDA Announces Coronavirus Food Assistance Program,” Release No. 0222.20, April 17, 2020. Published
in the Federal Register on May 21, 2020 (85 Federal Register 30825).
7 For example, see CRS In Focus IF11245, FY2019 Supplemental Appropriations for Agriculture.
8 For a discussion of USDA’s authority under the CCC Charter Act, see CRS Report R44606, The Commodity Credit
Corporation: In Brief.
9 USDA, “ USDA Announces Details of Direct Assistance to Farmers through the Coronavirus Food Assistance
Program,” News Release, May 19, 2020.
10 For up-to-date program information, including application forms and payment processing information, visit the
USDA FSA web portal for CFAP at https://www.farmers.gov/cfap.
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CFAP direct payment program stands in contrast to congressional y authorized farm bil support
programs, supplemental assistance, and other USDA-initiated payment programs for both its
scale ($16 bil ion) and its complicated payment formulation.11 The CFAP separates COVID-
related injury into two components (income losses due to price declines, and unexpected
marketing costs due to food supply chain disruptions), each with its own distinct funding
source—the CARES Act and the CCC, respectively. The payments calculated for each of these
two funding sources for each eligible commodity are combined into a single payment per
producer, with an initial tranche equal to 80% of the combined payment for which each
qualifying producer is potential y eligible. This unusual payment formulation is explained in this
report.
USDA could provide additional financial assistance for the U.S. agricultural sector beyond CFAP
later in the summer when a replenishment payment of $14 bil ion for the CCC becomes available.
Congress is also considering providing additional support, including support for additional
agricultural commodities and sectors that were not initial y eligible under CFAP.12 These potential
additional efforts are not discussed in this report.
Funding for CFAP Direct Payments
Funding for CFAP’s direct payment program is from two sources: $9.5 bil ion from the CARES
Act, and $6.5 bil ion obtained with existing USDA authorities under the CCC Charter Act.13
USDA states that each of these funding sources has its own specific authority and, as a result,
USDA is to use the funds from each source in a manner that USDA interprets as being consistent
with that authority.14
 USDA is to use the $9.5 bil ion of CARES Act funding to compensate producers
for commodity and livestock losses due to price declines of at least 5% that
occurred between mid-January 2020 and mid-April 2020. In the case of specialty
crops, the funding is to compensate for losses associated with products that were
shipped from the farm by April 15, but spoiled due to market disruptions,
resulting in no payment.
 USDA is to use $6.5 bil ion of CCC funding to compensate producers for
unexpected costs due to on-going market disruptions and to assist with the
transition to a more orderly marketing system as the pandemic wanes.
Thus, each of these funding sources are to be used for different types of losses or costs—CARES
Act payments for price declines, and CCC payments for unexpected marketing costs. Such

11 T he proposed CFAP direct payments program would exceed previous USDA ad hoc direct payment programs of
large scale, including the market loss assistance payments of 1999 ($3 billion), 2000 ($11 billion), and 2001 ($5.5
billion), source: USDA, Economic Research Service (ERS), Farm Income and Wealth Statistics,
https://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/; and the market facilitation payment (MFP)
programs of 2018 ($8.6 billion) and 2019 ($14.5 billion), source: USDA, FSA, Market Facilitation Program,
https://www.farmers.gov/manage/mfp.
12 On May 15, 2020, the House passed the HEROES Act (H.R. 6800), which would authorize $16.5 billion in
additional direct payments by the Secretary of Agriculture. Among its provision s, the bill would compensate producers
who have had to dispose of livestock and poultry that could not be sold due to processing disruptions, and would
provide special assistance targeted to dairy producers. It further includes aid targeted to biofuels pla nts, fruit and
vegetable growers, and local agriculture.
13 For a discussion of USDA’s authority under the CCC Charter Act, see CRS Report R44606, The Commodity Credit
Corporation: In Brief.
14 USDA, FSA, “Coronavirus Food Assistance Program,” 85 Federal Register 30825, May 21, 2020.
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marketing costs may include the removal or disposition of surplus agricultural commodities, the
purchase of materials and facilities required to produce and market agricultural commodities, and
aid in the development of new markets, marketing facilities, and uses for such commodities.
USDA has stated that it wil track payments made from the CARES Act and the CCC Charter Act
funds separately, to ensure that the payments are consistent with each respective authority.
Nonetheless, USDA is to combine payments made under both CARES Act and CCC funds into a
single payment for eligible producers. Thus, a producer wil need to complete only one CFAP
payment application.
Eligibility Criteria for CFAP Direct Payments
USDA has developed criteria to determine which commodities and which producers are eligible
for CFAP support.15 Eligibility criteria for producers builds off of general USDA program
eligibility criteria, whereas criteria identifying eligible commodities is largely unique to the CFAP
program and varies by commodity groups.
Eligible Commodities
According to USDA, only commodities produced in the United States are eligible for CFAP
direct payments. In addition, USDA has specified certain eligibility criteria for each of the major
agricultural commodity groups that includes a price decline of at least 5% from January 15, 2020,
to April 15, 2020, and/or unexpected marketing costs (including spoilage) as listed in Table 1.
Based on an analysis of these criteria, USDA has determined that the commodities listed in Table
1 are eligible for either a price-decline or marketing-cost payment.
Table 1. Eligibility Criteria and Eligible Commodities by Category
Category
Eligibility Criteria and Eligible Commodities
Non-Specialty
Eligibility Criteria: Non-specialty crop producers who have suffered at least a 5% price
Cropsa
decline between mid-January and mid-April (see Table A-1), and who face increased
marketing costs for unpriced inventories as of January 15, 2020 (see Table 2).
Eligible Non-Specialty Crops: Malting barley, canola, corn, upland cotton, mil et, oats,
soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat.
Livestock
Eligibility Criteria: Livestock producers who have suffered at least a 5% price decline
Commodities
between mid-January and mid-April (see Table A-1), and who face increased marketing costs
for unpriced inventories as of January 15, 2020 (see Table 2).
Eligible Livestock Commodities:b Cattle, hogs and pigs, and sheep (lambs and yearlings).
Wool
Eligibility Criteria: Wool producers who have suffered at least a 5% price decline between
mid-January and mid-April (see Table A-1), and who face increased marketing costs for
unpriced inventories as of January 15, 2020 (see Table 2).

Eligible Wool: Graded (clean basis) and ungraded (paid on a greasy basis).
Dairy
Eligibility Criteria: Al dairy operations with milk production in January, February, and/or
March 2020; as wel as any dumped milk production during the months of January, February,
and March 2020.

Eligible Dairy: Al milk produced during the first quarter of 2020.

15 Ibid.
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Category
Eligibility Criteria and Eligible Commodities
Specialty
Eligibility Criteria: Producers of specialty crops are eligible for CFAP payments in any of the
Cropsc
fol owing three categories:
(1) Had crops that suffered at least a 5% price decline between January 15, 2020, and April 15,
2020;d
(2) Had produce that shipped by April 15, 2020, but subsequently spoiled due to loss of
marketing channel;e and
(3) Had shipments that did not leave the farm by April 15, 2020 (for example, were harvested
but are sitting in crates on the farm), or mature crops that remained unharvested by that
date (for example, were plowed under) due to lack of buyers, and which have not been and
wil not be soldf.
Eligible Specialty Crops:
Fruit: apples, avocados, blueberries, cantaloupe, grapefruit, kiwifruit, lemons, oranges, papaya,
peaches, pears, raspberries, strawberries, tangerines, tomatoes, watermelons.
Vegetables: artichokes, asparagus, broccoli, cabbage, carrots, cauliflower, celery, sweet corn,
cucumbers, eggplant, garlic, iceberg lettuce, romaine lettuce, dry onions, green onions,
peppers, potatoes, rhubarb, spinach, squash, sweet potatoes, taro.
Nuts: almonds, pecans, walnuts.
Other: beans, mushrooms.
Other
Certain other commodities (including those with insufficient information) wil be evaluated
through a Notice of Funds Availability (NOFA) process.
Source: USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21, 2020.
Note: Non-specialty crops, livestock, and wool that meet the 5% price decline criteria are assumed to have met the
marketing cost criteria.
a. According to USDA’s CFAP rule (85 Federal Register 30825, May 21, 2020), non-specialty crops are those
crops listed in this table, and any crops announced in a NOFA. The term excludes crops intended for
grazing.
b. See the notes to Table A-1 for a details on eligible animal species.
c. According to USDA’s CFAP rule (85 Federal Register 30825, May 21, 2020), specialty crop are those crops
listed in this table, and any crops for which funds are made available and announced in a NOFA. The term
excludes crops intended for grazing.
d. To verify a qualifying price decline for a specialty crop, producers must maintain records, such as a bil of
sale, documenting the price received for the crop.
e. To verify market spoilage, producers must obtain documentation such as a letter from the buyer explaining
non-payment or other record validating non-payment (this applies to producers who have met contractual
obligations in delivering the crop to the buyer, but have not been paid).
f.
To verify unsold inventories, if requested, producers must provide supporting documentation, which AMS
wil use to substantiate claims on a case-by-case basis.
Request for Additional Commodities
USDA is to consider additional crops for eligibility for CFAP payments by collecting information
on potential y eligible crops.16 Producers of commodities not included on the original CFAP list
who assert they are eligible may submit information to USDA for consideration in decisions
about including additional commodities. Approximately $637 mil ion or about 4% of the CFAP’s
$16 bil ion in funding is available to provide assistance to producers of other commodities that
are identified through the Notice of Funds Availability (NOFA) process.17 USDA has stated that it

16 For more details, see the information posted at USDA’s CFAP web portal at https://www.farmers.gov/cfap, including
a USDA Fact Sheet, “Consideration of Additional Commodities,” available under “Resources.”
17 USDA, “Coronavirus Food Assistance Program: Cost Benefit Analysis,” May 14, 2020.
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is particularly interested in obtaining information about nursery products, aquaculture products,
and cut flowers.
Ineligible Commodities
Non-specialty crops and livestock that did not suffer a price decline of at least 5% from mid-
January 2020 to mid-April 2020 are not eligible for CFAP. Specifical y, this includes sheep more
than two years old, eggs/layers, soft red winter wheat, hard red winter wheat, white wheat, rice,
flax, rye, peanuts, feed barley, Extra Long Staple (ELS) cotton, alfalfa, forage crops, hemp, and
tobacco.18 USDA may reconsider the excluded commodities if credible evidence supports a 5%
price decline or COVID-related marketing costs. Any crop intended for grazing is excluded from
eligibility for CFAP.
Eligible Producers
According to USDA rules, to qualify for a CFAP payment, an eligible individual or legal entity
must meet the following criteria:
 Each producer or legal entity of qualifying commodities must complete a CFAP
application form and provide any required documentation (as specified below).19
 A producer must share in the risk of producing a qualifying crop or livestock, and
is entitled to share in the crop or livestock available for marketing between
January 15, 2020, and April 15, 2020, or April 16, 2020, through May 14, 2020.
A contract grower who does not own the livestock is to be considered a producer
if the contract al ows the grower to have risk in the livestock.
 The producer must be in compliance with conservation provisions—including
highly erodible land conservation (Sodbuster) and wetland conservation
(Swampbuster) provisions.20
 A producer must be either a U.S. citizen or a resident alien; however, a foreign
person may qualify if they provide sufficient land, capital, and active personal
labor to the farming operation. USDA has established that 400 hours of active
personal labor or active personal management meets this standard.
 There is no requirement to have crop insurance coverage or coverage under the
Noninsured Crop Disaster Assistance Program.
 A person or legal entity, other than a joint venture or general partnership,21 is
ineligible for payments if the person’s or legal entity’s average adjusted gross
income (AGI), using the average of the AGIs for the 2016, 2017, and 2018 tax
years, is more than $900,000, unless at least 75% of that person’s or legal entity’s
average AGI is derived from farming, ranching, or forestry-related activities.
 A producer must not have a controlled substance violation.

18 For more information, see additional USDA CFAP program information at https://www.farmers.gov/cfap.
19 USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21, 2020.
20 See CRS Report R42459, Conservation Compliance and U.S. Farm Policy.
21 With respect to joint ventures and general partnerships, this AGI provision will be applied to each member of the
joint venture and general partnership.
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CFAP Direct Payment Calculations
A producer’s total CFAP payment is determined by first, multiplying the relevant quantity of each
affected commodity by its respective payment rate. The payments from the two rates are then
combined into a single payment per eligible commodity for each eligible producer (Table 2).
Second, the total CFAP payment is obtained by summing payments across al of a producer’s
commodities. These calculations require both payment rates and applicable quantities as
described in the box “Deriving the CFAP Payment Rates (PRs) and Payment Quantities.”
Table 2. CFAP Payment Formula by Commodity Category

Quantity Measure

Factor

Payment Rate (PR)a
Non-Specialty Crops—payment equals sum of:

1
Unpriced inventoryb as of 1/15/20
x
50%
x Cares Act PR (Table A-1)
2
Unpriced inventory as of 1/15/20
x
50%
x CCC PR (Table A-1)
Specialty Crops—payment equals sum of:

1
Quantity sold during 1/15/20 to 4/15/20
x
100%
x Cares Act PR-1 (Table A-2)
2
Quantity shipped, but spoiled:c 1/15/20 to 4/15/20
x
100%
x Cares Act PR-2 (Table A-2)
3
Unpriced quantity on farm:d 1/15/20 to 4/15/20
x
100%
x CCC PR-3 (Table A-2)
Cattle—payment equals sum of:

1
Head sold during 1/15/20 to 4/15/20
x
100%
x Cares Act PR (Table A-1)
2
Unpriced inventory, max during 4/16/20 to 5/14/20e
x
100%
x CCC PR (Table A-1)
Hogs and Pigs—payment equals sum of:

1
Head sold during 1/15/20 to 4/15/20
x
100%
x Cares Act PR (Table A-1)
2
Unpriced inventory, max during 4/16/20 to 5/14/20
x
100%
x CCC PR (Table A-1)
Dairy—payment equals sum of:

1
1st quarter milk production during 1/15/20 to 4/15/20
x 100.0%
x Cares Act PR (Table A-1)
2
1st quarter milk production during 1/15/20 to 4/15/20f
x 101.4%
x CCC PR (Table A-1)
Lambs and Yearlings—payment equals sum of:

1
Head sold during 1/15/20 to 4/15/20
x
100%
x Cares Act PR (Table A-1)
2
Unpriced inventory, max during 4/16/20 to 5/14/20
x
100%
x CCC PR (Table A-1)
Wool—payment equals sum of:

1
Unpriced inventory as of 1/15/20
x
50%
x Cares Act PR (Table A-1)
2
Unpriced inventory as of 1/15/20
x
50%
x CCC PR (Table A-1)
Source: USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21,
2020.
Notes: Farmers and ranchers wil self-certify their claims regarding inventories, sales, and shipments.
a. Payment rates (PR) for each commodity are listed in Table A-1 and Table A-2 at the end of this report.
b. The quantity harvested, but as-yet-unpriced inventory, for which the producer has vested ownership. The
inventory quantity may not exceed 50% of the producer’s 2019 total production of the commodity.
c. Quantity of the harvested crop that was shipped, but spoiled prior to receiving a payment due to a
disruption of the marketing channel.
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d. Quantity of the harvested crop that did not leave the farm (was unsold), and the quant ity of mature crops
that remained unharvested.
e. The highest inventory number between April 16 and May 14, 2020.
f.
2nd quarter milk production is approximated by applying an adjustment factor of 1.014 to the 1 st quarter
production.

Deriving the CFAP Payment Rates (PRs) and Payment Quantities
The CFAP payment for each commodity is based on separate payment rates for each of the two funding
sources—CARES Act and CCC. The different payment rates for each commodity and their underlying derivation
are described in Table A-1 and Table A-2.
CARES Act PR: Based on the Price Decline Between Mid-January to Mid-April
The CARES Act PR reflects the income loss associated with the price decline for each commodity between mid -
January and mid-April. USDA estimates the price-loss payment rate for each commodity as a portion of the price
decline between the week of January 13-17, 2020, and the week of April 6-9, 2020, using futures contract prices
or AMS-reported cash prices depending on availability.
CCC PR: Based on Unexpected Marketing Costs
The market-cost PR (CCC PR) for each commodity is based on USDA’s projection of costs likely to be incurred
for marketing the surplus inventory due to disrupted markets.
Payment Quantities Are Approximated by Inventories or 1st Quarter Sales
To approximate losses, the CARES Act and CCC PRs are multiplied by an applicable measure of the affected
quantity of an eligible commodity (depending on the commodity as shown in Table 2).
For non-specialty crops and wool, the payment quantity for both CARES Act PR and CCC PR is approximated by
using the lower of either: (1) the unsold quantity of unpriced inventory22 as of January 15, 2020, for which the
producer has vested ownership, or (2) 50% of the producer’s 2019 total production of the commodity.
For livestock (including cattle, hogs and pigs, and lambs and yearlings),

the payment quantity for the CARES Act PR is approximated by the number of animals sold during the period
of January 15, 2020, to April 15, 2020; and

the payment quantity for the CCC PR is approximated by the maximum unpriced inventory of animals during
the period from April 16, 2020, to May 14, 2020.
Specialty crops may be eligible for any of three types of PRs (Table A-2):23

CARES Act PR-1 reflects the mid-January to mid-April price decline, and is applied to the producer-certified
sales (in pounds) during the period of January 15, 2020, to April 15, 2020; and

CARES Act PR-2 is applied to producer-certified product that has been shipped from the farm by April 15,
2020, but that spoiled due to COVID-related market disruptions prior to receiving payment.24

CCC PR-3 reflects COVID-related marketing costs and is applied to unsold inventory—estimated by the
producer-certified maximum unpriced inventory from April 16, 2020, to May 14, 2020.
For dairy:

the payment quantity for the CARES Act PR is approximated by using the quantity of milk sold during the 1 st
quarter of 2020; and

the payment quantity for the CCC PR is theoretical y applied to the quantity of milk sold d uring the 2nd
quarter—which is approximated by applying a growth rate of 1.014% to 1st quarter sales.

22 Unpriced inventory means any production that is not subject to an agreed-upon price in the future through a forward
contract, agreement, or similar binding document.
23 If a specialty crop’s price did not decline by at least 5% during this period, it is not eligible for CARES Act PR-1, but
may be eligible for CARES Act PR-2 or CCC PR-3. See Table A-2 for examples of commodities that did not
experience a sufficiently large price decline, but were still eligible for spoilage loss or marketing loss payments.
24 T he two different types of CARES Act payments are labeled “CARES Act PR-1” for price losses, and “CARES Act
PR-2” for spoilage losses in Table A-2.
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Examples of how this payment formula may be applied to certain commodities are available in
the footnoted references.25 Under this structure, CFAP payments are directly proportional, or
“coupled,” to actual production.26
Projected CFAP Direct Payment Outlays
USDA estimates that, once adjustments have been made to account for payment limits, the $16
bil ion in CFAP funding is to be al ocated across four different commodity groupings as follows:
livestock ($9.4 bil ion or 58.9%); row crops ($3.5 bil ion, 21.9%); specialty crops ($2.4 bil ion,
15.0%); and “other” commodities ($670 mil ion, 4.2%) (Figure 1).27 Direct payment spending
under the livestock category can be further delineated as $5.1 bil ion for cattle, $2.8 bil ion for
dairy, and $1.6 bil ion for hogs.
Figure 1. Projected CFAP Net Payments by Commodity After Payment Limitations

Source: USDA, “Coronavirus Food Assistance Program: Cost Benefit Analysis,” Table 11. Estimated Net CFAP
Payments by Commodity Group, after payment limitations, May 14, 2020, p. 20.
Notes: *Other includes commodities that may be identified through the NOFA process.

25 Paulson, N., G. Schnitkey, J. Coppess, C. Zulauf, and K. Swanson , “Coronavirus Food Assistance Program (CFAP)
Rules Announced,” farmdoc daily (10): 95, Dept . of Agricultural and Consumer Economics, University of Illinois at
Urbana-Champaign, May 22, 2020; see also Shelby Myers, “ Reviewing the CFAP Payment Formula for Non -Specialty
Crops,” Market Intel, American Farm Bureau Federation, May 28, 2020 .
26 T he nature of the linkage—coupled versus non-coupled—between program payments and producer production
choices is relevant to how such payments may count against U.S. domestic support commitments at the World T rade
Organization (WT O); for details, see CRS Report R45305, Agriculture in the WTO: Rules and Lim its on U.S. Dom estic
Support.
27 USDA, “Coronavirus Food Assistance Program: Cost Benefit Analysis,” T able 11. Estimated Net CFAP Payments
by Commodity Group, after payment limitations, May 14, 2020.
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CFAP Application Process
USDA accepted CFAP applications starting on May 26, 2020. Producers should apply through
their local FSA Service Center; however, an application may be submitted to any FSA county
office.28 To be eligible, an application must be submitted by the close of business on August 28,
2020. Payments to an eligible producer are expected to be made soon after each application is
processed, according to USDA.
In addition to the application form, several other standard USDA forms must be on file for al
persons and entities requesting CFAP benefits (Table A-3). However, for producers that are
existing FSA program participants, most of these supplementary forms are likely already on file
at their local FSA Service Center. In addition to these forms, if requested by USDA, an applicant
must provide documentation that verifies the quantities of production and/or inventory used in the
application, and that establishes the applicant’s ownership share and value at risk for the
commodity.
Producer Data Subject to Verification
Producers are expected to self-certify their sales and inventories that are used to calculate CFAP
payments.29 Producers who are approved for participation in CFAP are required to retain
documentation in support of their application for three years after the date of approval. This
includes records and paperwork to demonstrate losses, especial y producers who have destroyed
their product (e.g., dumping of milk or plowing under specialty crops).
Participants receiving CFAP payments or any other person who furnishes such information to
USDA must permit authorized representatives of USDA or the Government Accountability Office
(GAO), during regular business hours, to enter the agricultural operation and to inspect, examine,
and make copies of books, records, or other items for the purpose of confirming the accuracy of
the information provided by the participant.
Initial Payment Tranche of 80%
USDA is to pay out an initial tranche of 80% of an eligible participant’s total potential CFAP
payments. By issuing initial payments, FSA’s goal is to provide assistance to those eligible
participants who immediately apply for assistance, while trying to ensure that CFAP payments do
not exceed the $16 bil ion funding limit. If funds remain available after the initial payment to al
eligible applicants, USDA is to disburse the remainder of available funding such that the initial
and final payments do not exceed a total of $9.5 bil ion for CARES Act funds and $6.5 bil ion for
CCC funds. Funds may be prorated if necessary to stay within these limits.
Payment Limits
CFAP payments are, in general, subject to a per-person and per-legal-entity payment limitation of
$250,000,30 which is expected to result in some eligible commodity producers not receiving the

28 CFAP application forms, as well as a “CFAP Payment Calculator” to assist producers with the application process,
are available from USDA at https://www.farmers.gov/cfap.
29 USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21, 2020.
30 T his compares with a payment limit of $125,000 per individual under traditional farm programs from T itle I of the
2018 farm bill (P.L. 115-334). See CRS Report R46248, U.S. Farm Program s: Eligibility and Paym ent Lim its.
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entire calculated CFAP payment. For example, USDA projects that, based on its CFAP payment
formula without payment limits, over $19 bil ion in CFAP payments would be made.31 However,
after applying the CFAP payment limit criteria, USDA projects that a net of $16 bil ion in CFAP
payments wil be made.
The CFAP payment limitation applies to the total amount of CFAP payments made with respect to
al eligible commodities of an individual or entity. However, unlike payment limits for other FSA
programs where corporate entities are limited to a single payment limit,32 USDA has elected to
apply special payment limitation rules to CFAP participants that are corporations, limited liability
companies, and limited partnerships. Under the special payment limitation rules, these corporate
entities may receive CFAP payments up to $750,000 if three or more different individual owners
or shareholders of the legal entity each contributed at least 400 hours of active personal labor or
active personal management (or combination thereof) with respect to the production of 2019
commodities.33
Under normal USDA rules governing recordkeeping requirements in regards to meeting the
“actively engaged in farming” criteria, al persons that provide any management to the farming
operation and seek to qualify as a farm manager—eligible for payments up to the individual
payment limit—are required to maintain contemporaneous records or activity logs of their
management activities.34
For a corporate entity,
 in general, the payment limit for the entity is $250,000;
 the payment limit for the entity is $500,000 if two different individual owners or
shareholders of the legal entity each contributed at least 400 hours of active
personal labor or active personal management (or combination thereof) with
respect to the production of 2019 commodities; and
 the limit is $750,000 if three or more different individual owners or shareholders
of the legal entity each contributed at least 400 hours of active personal labor or
active personal management (or combination thereof) with respect to the
production of 2019 commodities.
Neither the CARES Act nor the underlying CCC authority requires payment limits. Applying
payment limits was done at USDA’s discretion, as it also chose to do when establishing the
Market Facilitation Payment and Wildfire and Hurricane Indemnity Program programs that were
undertaken at the Secretary’s discretion.35 Benefits received under traditional farm support
programs such as the Acreage Risk Coverage and Price Loss Coverage programs are not to be
added to CFAP payments when evaluating payment limits.36 In other words, payment limits for
CFAP are independent of other farm program benefits received by a farm.

31 USDA, “Coronavirus Food Assistance Program: Cost Benefit Analysis,” May 14, 2020, p. 8.
32 CRS Report R46248, U.S. Farm Programs: Eligibility and Payment Limits.
33 USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21, 2020.
34 See CRS Report R44656, USDA’s Actively Engaged in Farming (AEF) Requirement.
35 See CRS Report R45310, Farm Policy: USDA’s 2018 Trade Aid Package, CRS Report R45865, Farm Policy:
USDA’s 2019 Trade Aid Package, and CRS In Focus IF11539, Wildfires and Hurricanes Indemnity Program (WHIP).
36 USDA, “Coronavirus Food Assistance Program: Cost Benefit Analysis,” May 14, 2020, p. 8.
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Issues for Congress
Four issues may be of potential interest to Congress:
1. An immediate congressional concern could involve monitoring the
implementation of the CFAP to ensure that program funding is fairly al ocated
across al affected agricultural sectors and al injured producers within those
sectors, to the maximum extent possible.
2. Congress may also be interested in evaluating whether CFAP payments help
mitigate the damage caused by the COVID-19 pandemic. Wil additional
assistance be necessary later this year? Is additional assistance needed to support
certain affected industries that are not eligible under USDA’s initial CFAP
rollout?
3. Another immediate concern may be monitoring and oversight of the large sums
of taxpayer money that wil be flowing out through the USDA and the CCC.
Producer self-certification of the farm data needed to calculate losses may create
an incentive to over-report losses.
4. Congress may evaluate whether CFAP wil serve as a useful template for future
disaster response programs.
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Appendix. Supplementary Tables
Table A-1. CFAP Payment Rates (PRs): Non-Specialty Crops, Dairy, & Livestock
Price Change ($ per unit)
Payment Rates
Average:
Average:
Decline
%
CARES
Commodity
Unit
Jan. 13-17
Apr. 6-9
(PD)a
change
Act
CCC
Non-Specialty Cropsb

50% PD
55% PD
Barley (malting)
Bu.
$4.27
$3.60
$0.67
15.7%
$0.34
$0.37
Canola
Lb.
$0.17
$0.15
$0.02
11.8%
$0.01
$0.01
Corn
Bu.
$3.93
$3.30
$0.63
16.0%
$0.32
$0.35
Durum wheat
Bu.
$5.83
$5.46
$0.37
6.3%
$0.19
$0.20
Hard red spring wheat
Bu.
$5.64
$5.28
$0.36
6.4%
$0.18
$0.20
Mil et
Bu.
$6.19
$5.57
$0.62
10.0%
$0.31
$0.34
Oats
Bu.
$3.04
$2.74
$0.30
9.9%
$0.15
$0.17
Sorghum
Bu.
$3.73
$3.14
$0.59
15.8%
$0.30
$0.32
Soybeans
Bu.
$9.47
$8.57
$0.90
9.5%
$0.45
$0.50
Sunflowers
Lb.
$0.18
$0.15
$0.03
16.7%
$0.02
$0.02
Upland cotton
Lb.
$0.72
$0.54
$0.18
25.0%
$0.09
$0.10
Dairyc

80% PD
25% PD
Dairy
Cwt.
$17.61
$11.72
$5.89
33.4%
$4.71
$1.47
Livestockd

80% PD
Costse
Slaughter cattle: fedf
Head
$1,736
$1,469
$267
15.4%
$214
$33
Slaughter cattle: matureg Head
$744
$630
$114
15.3%
$92
$33
Feeder cattle: < 600 lbs.h
Head
$812
$685
$127
15.6%
$102
$33
Feeder cattle: >600 lbs.i
Head
$1,107
$934
$173
15.6%
$139
$33
Al other cattlej
Head
$812
$685
$127
15.6%
$102
$33
Pigsk
Head
nal
na
$35
58%
$28
$17
Hogsm
Head
na
na
$23
21%
$18
$17
Lambs and yearlingsn
Head
na
na
$41
26%
$33
$7
Woolo

50% PD
55% PD
(graded, clean)
Lb.
$5.04 $3.62
$1.42
28.2%
$0.71
$0.78
(non-graded, greasy)p
Lb.
—
—
—
—
$0.36
$0.39
Source: USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21,
2020; and USDA, FSA, “Coronavirus Food Assistance Program Cost-Benefit Analysis, May 14, 2020. According
to USDA, commodity prices are drawn from several sources.
For non-specialty crops with futures market data, quotes for May futures contracts from various exchanges are
used: Chicago Mercantile Exchange (CME) for corn, soybeans, and oats; Minneapolis Grain Exchange for hard
red spring (HRS) wheat; and the Intercontinental Exchange for cotton and canola. Sorghum is calculated as 95%
of the corn futures price, durum wheat is 103.4% of the HRS wheat futures price, sunflowers is the soybean oil
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CME futures price divided by two, plus one cent. AMS data is used for other non -specialty crops where futures
contracts are not traded.
For specialty crops, price data was provided by AMS and represents an average of al units shipped of domestic
production, whether conventional or organic. The raw data source for the prices is the AMS Market News
Portal, https://www.ams.usda.gov/market-news/fruits-vegetables. The prices are for the shipping point if available,
or terminal market if not. For any particular crop, shipping point and terminal market prices are not mixed.
For livestock prices, price data was provided by AMS for cattle, hogs, milk (Class III and Class IV), and lamb and
yearlings. The weighting of milk class prices to represent al -milk prices is described in the notes below.
Adjustments to per-pound prices to account for live weight for cattle, hogs, and pigs are described in the notes
below. For wool, instead of a futures or cash price, the difference in the Eastern Market Indicator, as reported
by AMS in the National Wool Review, for the same two week periods is used to calculate the price decline.
Notes: PD = price decline; na = not available.
a. The price decline (PD) is the difference between the weekly average of the futures contract prices (or
weekly average of the cash prices if the futures prices are unavailable) for the weeks of January 13-17, 2020,
and April 6-9, 2020. Non-specialty crops and livestock commodities whose price decline is at least 5% are
listed in this table and are eligible for a CFAP payment as described in Table 2.
b. For al non-specialty crops, the CARES Act payment rate is 50% of the PD; the CCC payment rate is 55% of
the PD.
c. Dairy prices use an average of Class III (60% weight) and Class IV (40% weight) prices; the CARES Act
payment rate is 80% of the calculated price decline; the CCC payment rate is 25% of the decline.
d. For livestock, the CARES Act payment rate is 80% of the price decline.
e. The CCC payment rate for livestock is based on projected costs likely to be incurred for marketing the
2020 inventory after April 15, 2020, due to disrupted markets.
f.
Fed cattle are cattle that are market-ready and intended for slaughter. The price loss per-head of fed cattle
is approximated by first calculating the difference between the weekly average prices for January 13-17,
2020, and April 6-9, 2020. These values are multiplied by 14 (assuming an average weight of 1,400 lbs. or 14
cwt) to approximate the equivalent per-head values for fed cattle.
g. Mature cattle are either cul cattle from a dairy herd, or breeding livestock that have been removed from
inventory and are intended for slaughter. Similar to the procedure used for fed cattle, per-head prices for
mature cattle are approximated by multiplying the per-cwt calculated average prices and their difference by
50% and 12 because cul ed cattle typical y weight about 1,200 lbs. and are worth approximately half of fed
cattle.
h. Feeder cattle are young cattle that are taken off pasture and brought to a feedlot for finishing weight gain to
achieve market-ready status prior to slaughter. For feeder cattle under 600 lbs., the calculated average
prices and their difference are multiplied by 5.5 to represent the average weight of 550 lbs.
i.
Similarly, for feeder cattle over 600 lbs., the calculated average prices and their difference are multiplied by
7.5 to represent 750 lbs., the average weight when feeder cattle are placed on feed.
j.
Commercial y raised or maintained bovine animals not meeting definitions of other cattle categories,
excluding beefalo, bison, and animals used for dairy production.
k. Pigs are any swine that weighs less than 120 lbs.
l.
USDA did not provide the price averages used to calculate the price decline for pigs, hogs, and lambs and
yearlings.
m. Hogs are any swine that weights more than 120 lbs. For hogs, the negotiated purchase prices as reported
by AMS (https://mpr.datamart.ams.usda.gov/) were used to calculate the price change between the two
periods.
n. Lambs and yearlings are al sheep less than two years of age.
o. Wool means the fiber sheared from a live sheep and includes, unless noted otherwise, graded and
nongraded wool. Graded wool is paid on a clean basis, and ungraded wool is paid on a greasy basis. For al
wool, the CARES Act payment rate is 50% of the PD; the CCC payment rate is 55% of the PD.
p. USDA uses a 50% conversion rate from greasy wool to clean wool, thus the payment rates for greasy wool
are set at half the value of clean wool.
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Table A-2. CFAP Payment Rates (PRs): Specialty Crops
Price Changea ($ per lb.)

Payment Rates (PR)
Average
Average
Price

CARES Act PR-1:
CARES Act PR-2: for
CCC PR-3:
Price: Jan.
Price: Apr.
Decline
%
for Sales Lossesc
product spoilage due to
for unsold
Commodity
13-17
6-10
(PD)b
change
80% of PD
market disruptiond
inventorye

($/lb)
($/lb)
($/lb)
%

PR-1 ($/lb)
PR-2 ($/lb)
PR-3 ($/lb)
Almonds
$1.90
$1.58
$0.32
16.8%

$0.26
$0.57
$0.11
Apples
—
—
—
—

—
$0.18
$0.03
Artichokes
$1.64
$0.81
$0.83
50.6%

$0.66
$0.49
$0.10
Asparagus
—
—
—
—

—
$0.38
$0.07
Avocados
—
—
—
—

—
$0.14
$0.03
Beans
$0.55
$0.33
$0.22
40.0%

$0.17
$0.16
$0.03
Blueberries
—
—
—
—

—
$0.62
$0.12
Broccoli
$1.62
$0.84
$0.78
48.1%

$0.62
$0.49
$0.10
Cabbage
$0.22
$0.16
$0.05
27.3%

$0.04
$0.07
$0.01
Cantaloupe
—
—
—
—

—
$0.10
$0.02
Carrots
$0.38
$0.35
$0.03
7.9%

$0.02
$0.11
$0.02
Cauliflower
$1.02
$0.89
$0.14
12.7%

$0.11
$0.31
$0.06
Celery
—
—
—
—

—
$0.07
$0.01
Corn, sweet
$0.43
$0.31
$0.11
27.9%

$0.09
$0.13
$0.03
Cucumbers
$0.50
$0.34
$0.16
32.0%

$0.13
$0.15
$0.03
Eggplant
$0.50
$0.40
$0.09
20.0%

$0.07
$0.15
$0.03
Garlic
—
—
—
—

—
$0.85
$0.17
Grapefruit
—
—
—
—

—
$0.11
$0.02
Kiwifruit
—
—
—
—

—
$0.32
$0.06
Lemons
$0.70
$0.61
$0.09
12.9%

$0.08
$0.21
$0.04
Lettuce, iceberg
$0.50
$0.25
$0.25
50.0%

$0.20
$0.15
$0.03
Lettuce, romaine
$0.40
$0.31
$0.09
22.5%

$0.07
$0.12
$0.02
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Price Changea ($ per lb.)

Payment Rates (PR)
Average
Average
Price

CARES Act PR-1:
CARES Act PR-2: for
CCC PR-3:
Price: Jan.
Price: Apr.
Decline
%
for Sales Lossesc
product spoilage due to
for unsold
Commodity
13-17
6-10
(PD)b
change
80% of PD
market disruptiond
inventorye
Mushrooms
—
—
—
—

—
$0.59
$0.11
Onions, dry
$0.18
$0.16
$0.02
11.1%

$0.01
$0.05
$0.01
Onions, green
—
—
—
—

—
$0.30
$0.06
Oranges
—
—
—
—

—
$0.14
$0.03
Papaya
—
—
—
—

—
$0.32
$0.06
Peaches
$1.05
$0.96
$0.09
8.6%

$0.08
$0.32
$0.06
Pears
$0.58
$0.49
$0.09
15.5%

$0.08
$0.18
$0.03
Pecans
$3.10
$2.76
$0.34
11.0%

$0.28
$0.93
$0.18
Peppers, bel type
$0.73
$0.56
$0.17
23.3%

$0.14
$0.22
$0.04
Peppers, other
$0.73
$0.55
$0.18
24.7%

$0.15
$0.22
$0.04
Potatoes
—
—
—
—

—
$0.04
$0.01
Raspberries
—
—
—
—

—
$1.45
$0.28
Rhubarb
$3.42
$3.23
$0.19
5.6%

$0.15
$1.03
$0.20
Spinach
$1.22
$0.77
$0.45
36.9%

$0.37
$0.37
$0.39
Squash
$1.30
$0.40
$0.90
69.2%

$0.72
$0.39
$0.08
Strawberries
$2.40
$1.35
$1.05
43.8%

$0.84
$0.72
$0.14
Sweet potatoes
—
—
—
—

—
$0.18
$0.04
Tangerines
—
—
—
—

—
$0.22
$0.04
Taro
—
—
—
—

—
$0.23
$0.05
Tomatoes
$1.26
$0.46
$0.80
63.5%

$0.64
$0.38
$0.07
Walnuts
—
—
—
—

—
$0.45
$0.09
Watermelons
—
—
—
—

—
$0.02
—
Source: USDA, FSA, “Coronavirus Food Assistance Program,” Final Rule, 85 Federal Register 30825, May 21, 2020; and USDA, FSA, “Coronavirus Food Assistance
Program Cost-Benefit Analysis, May 14, 2020.
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Notes: Specialty crops include, but are not limited to, those commodities listed in this table. An “—” signifies that either a price increase occurred between the two
periods used to calculate the price change, or the price decrease was less than 5%, hence no payment wil be made under CARES Act PR-1. However, the commodity
may be eligible for payments under CARES Act PR-2 and CCC PR-3.
a. Weekly AMS cash prices are used to calculate the average prices for the two periods.
b. The price decline is the difference in the weekly average of cash prices between the weeks of January 13 -17, 2020, and April 6-10, 2020. Commodities whose price
decline is equal to or greater than 5% are eligible for a CFAP payment based on the CARES Act PR-1 payment rate as described in Table 2.
c. The CARES Act payment rate (PR-1) for price losses equals 80% of the calculated price decline.
d. The CARES Act payment rate (PR-2) for market spoilage equals 30% of the lost value of any shipment.
e. The CCC payment rate (PR-3) for unsold inventory equals 5.875% of the crop’s value. The 5.875% is calculated as 25% of the average price decline (of 23.5%) across
specialty crops for which data was available.
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USDA’s Coronavirus Food Assistance Program (CFAP) Direct Payments

Table A-3. Additional USDA Forms for CFAP Eligibility
Form
Purpose
CCC-901
Member Information

CCC-901 identifies members of a farm or ranch that is a legal entity. Member Information wil be
completed by legal entities and joint operations to col ect the fol owing: member names,
addresses, and Tax Identification Numbers (TINs); and citizenship status. If any member of the
legal entity is a foreign person, CCC-902 must be completed by the legal entity or joint operation.
CCC-902
Farm Operating Plan

For CFAP purposes only the fol owing fields on the CCC-902 form are required to be completed:
names, addresses, and TINs; citizenship status; and contributions to the farming operation for
foreign persons.
CCC-941
Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax
Information

CCC-941 information is used to evaluate whether a producer is in compliance with AGI criteria.
CCC-942
Certification of Income from Farming, Ranching and Forestry Operations

CCC-942 must be completed if a producer exceeds the AGI criteria of $900,000, but derives at
least 75% of income from farming activities.
AD-1026
Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC)
Certification

AD-1026 certifies compliance with required conservation provisions.
AD-2047
Customer Data Worksheet Request for Business Partner Record Change

AD-2047 provides basic customer contact information.
SF-3881
ACH Vendor/Miscellaneous Payment Enrollment Form (Direct Deposit)

SF-3881 col ects a producer’s banking information to al ow USDA to make payments to via d irect
deposit.
Source: USDA, Coronavirus Food Assistance Program, web portal, https://www.farmers.gov/cfap.
Note: For producers that are existing FSA program participants, most of these forms are likely already on file at
their local FSA Service Center. In addition to these forms, if requested by USDA, an applicant must provide
documentation that verifies the quantities of production and/or inventory used in the application, and that
establishes the applicant’s ownership share and value at risk for the commodity.

Author Information

Randy Schnepf

Specialist in Agricultural Policy

Congressional Research Service
18

USDA’s Coronavirus Food Assistance Program (CFAP) Direct Payments

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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
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Congressional Research Service
R46395 · VERSION 1 · NEW
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