More on CFAP payments
Eligible commodities must be owned, not subject to an agreed upon price in the future through forward contracts, agreements, or similar biding documents, eligible commodities must be SUBJECT TO PRICE RISK (intended to be sold). Crops intended for grazing are ineligible for CFAP, other intended uses, such as hay or silage are eligible, IF they are subject to price risk. The following are eligible commodities:
Dairy/Milk, Malting Barley, Canola, Corn, Upland Cotton, Sorghum, Soybeans, Sunflowers, Durum Wheat, Hard Red Spring Wheat, Wool (graded and ungraded), Cattle
o Feeder Cattle: less than 600 lbs (includes calves born to beef cows owned prior 01/15/2020 and intended to be marketed this fall).
o Feeder Cattle: 600 lbs or more (owned prior 01/15/2020)
o Slaughter Cattle: Fed Cattle (Finished Fat cattle) (owned prior 01/15/2020)
o Slaughter Cattle: Mature Cattle (culls) (owned prior 01/15/2020)
o All other Cattle (owned prior 01/15/2020)
· Hogs & Pigs
o Pigs : Less than 120 lbs (owned prior 01/15/2020)
o Hogs: 120 pounds or more (owned prior 01/15/2020)
· Lambs & Yearlings
o All sheep less than 2 years of age (owned prior 01/15/2020)
§ Lambs born to ewes that were owned prior 01/15/2020
For crops, producers must provide 2019 total production and 2019 production NOT sold as of 01/15/2020.
Hay or silage to bushel conversion factors will be available.
For livestock owners and contract growers who are at risk and have a share of the livestock that are available for marketing or would have a share if the livestock had been marketed ARE eligible livestock producers.
• Livestock owned on Jan. 15, 2020 and sold between Jan. 15 and April 15, 2020
• Offspring born from that Jan. 15, 2020 inventory
• Livestock inventory owned between April 16 and May 14, 2020
• Livestock that are no longer used for dairy production and have entered the beef cattle market
• Livestock purchased after Jan. 15, 2020 and sold on or before April 15, 2020 are INELIGIBLE
• Livestock subject to an agreed upon price in the future through a forward contract, agreement, or similar binding document as of Jan. 15, 2020 are INELIGIBLE
Livestock Example ~
DJB Cattle Co had the following livestock in inventory on January 15, 2020:
• 500 bred cows
• 15 herd bulls
• 50 replacement heifers
SALES: Between January 15 and April 15, 2020, DJB certified that he sold the following livestock:
• 10 cull cows
• 7 baby calves born after January 15th
INVENTORY: DJB certified that his highest inventory between April 16 and May 14, 2020 was the following:
• 480 cow/calf pairs
• 18 herd bulls
• 75 replacement heifers
Application would be completed for:
7 Feeder Cattle Less than 600 lbs (sold)
10 Slaughter Cattle: Mature Cattle (sold)
480 Feeder Cattle Less than 600 lbs (inventory)
545 All other cattle (480 cows, 15 bulls, & 50 heifers) (inventory)
The information required from producers to participate in CFAP will be a self-certification by the producer or authorized representative.
The following sales and inventory information is required from livestock producers, as applicable:
• Owned inventory of eligible livestock as of Jan. 15, 2020 and any offspring from that inventory, that were subject to price risk and sold between Jan. 15 and April 15, 2020
• Highest owned inventory of eligible livestock that were subject to price risk between April 16 and May 14, 2020
In general, the total amount of CFAP payments that a person or legal entity (excluding general partnerships and joint ventures) may receive is $250,000.
Payments to a joint operation, including a general partnership or joint venture, cannot exceed $250,000 per person or legal entity that comprise first level ownership of the general partnership or legal entity, unless the first level member is another joint operation.
Optional Increase in $250,000 Limitation for applicants who are:
• Limited Liability Companies
• Limited Partnerships
The initial CFAP payment will be factored at 80% of the calculated payment and will be applied after applying payment limitation.
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