Federal Agricultural Programs Update

January 21, 2021


Katelyn Parsons

Coronavirus Food Assistance Program 2 (CFAP 2):
  • Producers who received a CFAP 2 payment under the “Sales Commodities” category (fruits, vegetables, aquaculture, nursery, honey, maple, etc.) and also received a Federal Crop Insurance indemnity payment and/or a payment under the Noninsured Crop Disaster Assistance Program (NAP) for the 2019 crop year may modify their original CFAP 2 application to include those payments as part of their eligible sales amount. The modification can be processed through the FSA Office that handled the original CFAP 2 application. Deadline to complete this modification is February 26, 2021.
Paycheck Protection Program (PPP):
  • PPP has reopened and is accepting new applications (First Draw) as well as subsequent applications (Second Draw) from previous PPP participants. The deadline to apply for the PPP is March 31, 2021.
  • As a recap, PPP is a program administered by the U.S. Small Business Administration (SBA) with applications being processed through an SBA-approved lending institution. While PPP is a loan, an important point to note is that the loan will be fully forgiven if the funds are used for payroll costs (minimum %), interest on mortgages, rent, and utilities. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Special consideration under PPP is provided for seasonal businesses including agricultural operations. More detailed information, including a list of SBA-approved lending institutions that process PPP applications can be found at SBA.Gov. PPP is a program you should definitely look into if you employ outside labor on your operation!
Federal Crop Insurance:
  • March 15, 2021 is the deadline to purchase the following Federal Crop Insurance policies: Corn (Silage & Grain),Fresh Market Sweet Corn, Potatoes (Franklin & Hampshire Counties), and, the Whole Farm Revenue Program. Producers interested should contact an approved Federal Crop Insurance agent. The March 15th deadline also applies to revising and/or cancelling an existing policy.
Noninsured Crop Disaster Assistance Program (NAP):
  • NAP is available on all annual vegetable crops not insured by Federal Crop Insurance. NAP offers Catastrophic (CAT) Coverage which ensures 50% of your actual production history of the crop and any losses are paid out at 55% of the approved market price for the crop. “Buy-Up” coverage is also available under NAP. Producers can cover between 50 – 65% of their actual production history and losses are paid out at 100% of the approved market price for the crop. Under CAT, producers pay an administrative fee and for “Buy-Up” coverage, producers pay an administrative fee and a premium based upon the coverage level selected. Beginning, historically underserved (which includes female opeators), and limited resource famers receive a waiver of the NAP administrative fee and receive a 50% reduction on the “Buy-Up” premium. Check with your local USDA – Farm Service Agency (FSA) Office, which administers NAP for more details. March 15, 2021 is the deadline to purchase NAP coverage for all 2021 Spring-planted crops. With the wide variations in weather over the past several growing seasons, NAP is a program producers should take a close look at to provide disaster protection on your valuable vegetable crops.