The following statement is from Texas Farm Bureau President Russell Boening following the announcement of Coronavirus Food Assistance Program signup details.
“The announcement of details for the Coronavirus Food Assistance Program is welcome news for Texas farmers and ranchers suffering economic impacts from the COVID-19 pandemic.
“The coronavirus has placed an unprecedented strain on commodity markets, the food supply chain and our producers’ ability to continue operating. It is the latest in a string of misfortunes that have kept the farm economy down for several years.
“Texas Farm Bureau thanks the Trump administration and Congressional leaders for working diligently to provide critically-needed assistance for Texas farm and ranch families suffering through COVID-19.
“As our farmers and ranchers weather this storm to keep consumers fed and clothed, we stress the need for additional assistance. We look forward to our continued work with Congress and the Trump administration to ensure our farm and ranch families can stay in business.
“Our country’s food supply chain is a national security issue. The American public recognizes now, perhaps more than ever, the vital service and contributions that farmers and ranchers provide to our country and many around the world. Our nation’s food security can never be taken for granted.”
Background on COVID-19 Impact:
Farm bankruptcies increased 23% in March 2020 compared to a year earlier.
By mid-April 2020:
Hog futures prices fell 53%.
Live cattle futures fell 25%.
Ethanol futures fell 33%.
Cotton futures fell 25%.
Background on CFAP Direct Payments:
Direct support signup will begin on May 26, 2020, through local Farm Service Agency offices.
There is a payment limitation of $250,000 per individual as well as a $900,000 adjusted gross income limit for individuals who do not derive 75% or more of their income from farming.
Corporations with up to three individuals actively engaged in farming will be eligible to receive up to three payment limits.
Eligible farmers will receive 80% of the total payment, up to the payment limit, upon approval of the application. The remaining 20% will be paid at a later date as funds remain available.
The $16 billion includes $9.5 billion appropriated by the CARES Act and $6.5 billion from the Commodity Credit Corporation Charter Act.