USDA Not on Track to Hit $16 Billion in CFAP Payments
Tyne Morgan, FarmJournal's Pork
July 27, 2020
As commodity prices continue to reel the impacts of COVID-19 on demand and market prices, Coronavirus Food Assistance Payments (CFAP) continue to roll out.
According to American Farm Bureau Federation, as of July 20, USDA had made $6.2 billion out of a possible $16B in CFAP payments. The largest chunk went to cattle producers, totaling $2.7 billion, followed by dairy at $1.3 billion in payments. The third largest sector to receive payments is corn farmers, receiving a total of $1.3 billion so far.
The projected $16 billion in CFAP may help cushion some of the projected losses in 2020 net farm income, but Pat Westhoff, an economist with University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) is now casting doubt. He says based on the current status of CFAP payments, he doesn’t think USDA will hit $16 billion.
“Whether that's an issue with program design, or with people who are applying, I know frankly don’t know, but it is one that is definitely grabbing our attention,” Westhoff says. “If we were forced to have a new [net farm income] snapshot today, we would probably assume something less than $16 billion those payments being made.”
Currently, FAPRI’s projections released in May showed net farm income falling slightly in 2020. The lower net farm income projection was even with the $16 billion in CFAP payments...
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