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Agricultural News

Plains Cotton Growers Remind Producers You still have Time to sign up for CFAP 2

Fri, 04 Dec 2020 13:29:45 CST

Plains Cotton Growers Remind Producers You still have Time to sign up for CFAP 2 Shawn Wade writes in the PCG email cotton newsletter today about CFAP 2 Benefits. He writes,

"If you have not signed up for the Coronavirus Food Assistance Program 2 (CFAP2), you still have time. The deadline for signing up is one week from today, Friday, December 11, 2020.

When it comes to understanding the CFAP2 program and how it was setup it is important to note that first and foremost CFAP2 was designed to offset a portion of the market price declines that have been exacerbated by the coronavirus pandemic and impacted the 2020 crop.

As a result, payments will be based on the previously reported payment rates and calculated using a weighted average of a producers’ 2020 approved crop insurance APH yield. The weighted average yield will incorporate all of a producers’ reported crop acreage and weighted across all practices. The resulting yield will then be multiplied by the eligible 2020 planted or failed acres of each participating crop on the farm.

For many producers on the High Plains of Texas, and elsewhere, the 2020 production season has been a tough road to travel and many acres were destroyed early and subsequently planted to a second crop, including acres that may have been subsequently failed due to unfavorable weather conditions during the season.

As producers are initiating the signup process, it has become clear that for CFAP2 all of the acres a producer planted to an eligible crop will be eligible for a payment regardless of whether or not the acres were the initial crop planted or a subsequent crop planted after the first.

The main thing to know about subsequent crop acres is that in order for them to also be eligible for CFAP2 payments they must have been reported to
the USDA FSA and appear on the producers certified acreage report.

Growers that have already filed their acreage certification reports and included both the initial and subsequent crops in their reporting should have nothing else to do except submit their CFAP2 application and begin the process.

Growers who reported and filed their acreage reports on the initial crop but did not report their subsequent crop plantings will need to contact their FSA office to update and amend their acreage certification report to reflect the second crop acres they planted. Revising the acreage certification report information will require payment of a $47 late filing fee.

It is important that a producer revise their acreage reports and pay the late fee to ensure that their 2020 ARC/PLC payments are not inadvertently impacted. Failure to revise the initial acreage report could result in loss of eligibility for 2020 ARC/PLC payments if done incorrectly.

For more information about how to revise and update a 2020 Crop Acreage report, producers are encouraged to contact their local USDA Farm Service Agency office to determine what steps they need to complete to make second crop acreage eligible for CFAP2 payments and also maintain full eligibility for the 2020 ARC/PLC program."

As of November 29, 2020, CFAP2 has paid out approximately $11.1 billion nationwide and $545 million to Texas producers.



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